In a recent statement, U.S. Senator Cynthia Lummis highlighted that several U.S. states are advancing more rapidly than the federal government in establishing strategic Bitcoin reserves. Lummis, a prominent advocate for cryptocurrency integration into national financial strategies, has been vocal about the potential benefits of a federal Bitcoin reserve. However, she acknowledges that state governments are currently leading the charge.
Over the past few months, more than 28 states have introduced proposals allowing their treasuries to allocate a portion of public funds to Bitcoin. Of these, 15 bills have advanced to the House of Representatives for committee review, aiming to shape their legal frameworks. These initiatives reflect a growing trend among states to adopt Bitcoin as a hedge against inflation and financial instability.
Senator Lummis has proposed the “Bitcoin Act of 2024,” which advocates for the U.S. Treasury to acquire up to 1 million Bitcoins over five years, holding them for at least two decades. She argues that such a reserve could significantly reduce the national debt, which currently exceeds $36 trillion, and strengthen the U.S. dollar’s global standing.
Despite these efforts, federal adoption faces legal and political challenges. A Federal Reserve official recently highlighted existing legal barriers to establishing a national Bitcoin reserve, indicating that legislative changes would be necessary to authorize such holdings.
As state-level initiatives gain momentum, the federal government may need to address these legal obstacles to align national policy with the evolving financial landscape shaped by state actions.
