Sen. Lummis proposes US government purchase 5% of total Bitcoin supply

United States Senator Cynthia Lummis has introduced a bill proposing that the US government buy 5% of the world’s Bitcoin supply and hold it for at least 20 years.

“It can be used for one purpose, to reduce our debt,” Lummis declared during her keynote speech at the Bitcoin2024 Conference on July 27 in Nashville, Tennessee.

Lummis explained that, if passed, the plan will take place over five years with the aim of the US government acquiring one million Bitcoin ( BTC ), roughly 5% of the total 21 million Bitcoin.

“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a Reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis stated.

"We have the money now, but we will no longer be holding it in US dollars and asset that is designed to debase at least 2% per year, we'll be holding it in an asset that will grow in value," she added.

Lummis is a popular figure in the crypto industry

Lummis, who is well-regarded in the crypto industry, received a positive reaction from the audience as she yelled "this is the solution, this is the answer, this is our Louisiana purchase moment, thank you Bitcoin!"

Her speech was immediately after the highly anticipated keynote presentation of former US president and current Republican candidate Donald Trump. Trump announced his intent to make the US the crypto capital of the world , if elected in November.

It comes only days after Lummis released a report arguing against the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners.

The report, titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlighted the benefits of the critical mining infrastructure to the United States’ energy grid.

This is a developing story, and further information will be added as it becomes available.