A day after Federal Reserve chairman Jerome Powell clarified that the central bank lacks the authority to own Bitcoin, Senator Cynthia Lummis reignited the conversation with a bold proposal. The Wyoming Republican, known for her staunch advocacy of Bitcoin, expressed her vision to position the cryptocurrency as a cornerstone of America’s financial future.
“I want to give (Jerome Powell)” ability to own Bitcoin, Lummis remarked. She highlights the need for the federal government to embrace a strategic Bitcoin reserve.
NEW: 🇺🇸 US Senator Cynthia Lummis said she wants to give the Federal Reserve the authority to own #Bitcoin pic.twitter.com/gNZDZOy4Zp
— Bitcoin Magazine (@BitcoinMagazine) December 19, 2024
Cynthia Lummis Shares Her Ambitious Plan
Lummis detailed her ambitious plan, suggesting that such a reserve could act as a financial backstop for the United States dollar. Beyond just stabilizing the dollar, the proposal aims to transform Bitcoin into a national savings account.
Her proposal includes a phased purchase of 1 million Bitcoins over five years, establishing a significant federal stake in the cryptocurrency market. The proposal aims to transform Bitcoin into a national savings account, potentially offsetting the country’s ballooning $36 trillion national debt.
Bitcoin fell below the $100,000 mark on Wednesday night after U.S. Federal Reserve chair Jerome Powell voiced opposition to establishing a national Bitcoin reserve.
Jerome Powell clarified that the current law does not allow the US central bank to create a reserve of the cryptocurrency Bitcoin. This shows that monetary policymakers have no desire to participate in any government efforts to do so.
A few days ago, the Bitcoin Policy Institute drafted an executive order for President Trump‘s consideration aimed at the creation of a strategic Bitcoin reserve. The draft executive order aims to designate Bitcoin as a reserve asset within the exchange stabilization fund (ESF).
Also Read: US Fed Chair Jerome Powell Breaks Silence on Bitcoin Strategic Reserve
