Under the Strategic Bitcoin Reserve (SBR) Concept, Lummis Proposes 1 Million Bitcoin Buy Plan For The US
The Bitcoin Act 2024, outlined by Pro-Bitcoin U.S. Senator Cynthia Lummis, proposes the establishment of a Strategic Bitcoin Reserve (SBR) to strengthen the nation’s financial security and embrace cryptocurrency.
Strategic Bitcoin Reserve (SBR) Key provisions include:
1. Strategic Reserve: Creation of decentralised, secure Bitcoin storage facilities across the U.S.
2. Bitcoin Purchase Program: The U.S. Treasury will acquire 200,000 BTC annually for 5 years (total 1 million BTC) and hold them for at least 20 years.
3. Proof of Reserve System: Quarterly, independently audited reports with cryptographic attestation.
4. Consolidation: Transfer of all Bitcoin holdings from other agencies to the SBR.
5. Voluntary State Participation: States may participate in the program through segregated accounts.
6. Offsetting Costs: The first $6 billion of the Federal Reserve’s annual net earnings will support the SBR.
7. Bitcoin Property Rights: Legal protections for self-custody, preventing government seizure of lawfully owned Bitcoin.
This plan aims to integrate Bitcoin into the U.S. financial system while ensuring transparency and protecting individual rights.
This act clearly shows that U.S. citizens will gain greater ease and independence in holding Bitcoin, as they will be allowed to hold Bitcoin under self-custody.
To address the $36 trillion debt pressure, Lummis proposed the idea of selling gold and buying Bitcoin, arguing that Bitcoin is a better reserve asset than gold under the Strategic Bitcoin Reserve concept.
In response, Michael Saylor, chairman and former CEO of business intelligence firm MicroStrategy, called Bitcoin the future and gold the past. He said, “Sell the past; buy the future.”
Cynthia Lummis on Gary Gensler
Today, Lummis stated that SEC Chairman Gary Gensler, a known crypto sceptic, will resign from his role in January of this year. She expressed optimism that the next SEC chairman will be pro-crypto and work to regulate the cryptocurrency space with clear rules and laws.
