In a recent conference hosted by crypto enthusiast Anthony Pompliano in New York, Senator Cynthia Lummis expressed her views on the progress of a proposed US Bitcoin reserve, suggesting that advancements might take longer than anticipated.
Senator Lummis Advocates For State-Led Bitcoin Reserves
Lummis, a Republican from Wyoming and a key proponent of the initiative, indicated that state governments may take the lead in establishing Bitcoin reserves before any federal action occurs.
“States are incubators of innovation,” she stated, hinting at the potential for local governments to embrace digital assets more swiftly than the federal government.
Lummis highlighted that other countries are already making significant moves in the cryptocurrency space, specifically mentioning the United Arab Emirates (UAE), which has begun purchasing Bitcoin.
The pro-crypto Senator pointed out that sovereign wealth funds in various nations, which may not be as constrained by democratic processes, could more readily adopt similar strategies.
The concept of a national Bitcoin reserve was initially introduced by former President Donald Trump and Lummis at an industry conference in Nashville last July.
In January, Trump signed an executive order that called for a feasibility study on the establishment of a digital asset stockpile, though it did not explicitly state that Bitcoin would be the central focus of this reserve.
State Crypto Bills Rejected
During the conference, Lummis noted that some initiatives could be launched without the need for statutory authorization, suggesting that the White House’s stance on the proposal could influence its advancement. However, the recent momentum seen in state-level initiatives has faced significant hurdles.
In the past month, bills proposing the establishment of state crypto reserves in Montana, North Dakota, South Dakota, and Wyoming have all been rejected due to concerns regarding the risks and volatility associated with digital assets.
Strategic crypto reserve bills have been introduced in 24 states, yet the recent failures indicate a cautious approach among lawmakers. In Wyoming, Lummis’s own state, a bill allowing investment specifically in BTC was voted down in the House earlier this month, with only one representative supporting it.
Lummis’s Senate bill proposes that the US should acquire 1 million Bitcoin, while Trump’s initial proposal called for the government to retain ownership of approximately 200,000 tokens acquired through asset seizures.
Lummis expressed concern about the current lack of understanding among some lawmakers regarding Bitcoin and its potential as “digital gold.” “What we don’t have is enough knowledgeable members of the House and Senate to have the comfort level to do this yet,” she remarked.
Featured image from DALL-E, chart from TradingView.com
