Sen. Lummis draft bill allows US states to hold bitcoin

Sen. Cynthia Lummis' bill lays out a pathway for the U.S. to hold bitcoin and gives states the option to do so as well, according to a draft copy obtained by The Block. 

The bill is called the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024” or shorthand, the "BITCOIN Act of 2024," according to a draft version. 

"Bitcoin, as a decentralized and scarce digital asset, offers unique properties that complement existing national reserves, strengthening the position of the United States dollar in the global financial system," according to a copy of a draft version of the bill. 

The bill creates a "Bitcoin Purchase Program" that will buy no more than 200,000 bitcoin a year over a five-year period, amounting to 1 million BTC. Lummis also calls for the U.S. Treasury Department to publish quarterly reports and make those public on its website. States can also voluntarily participate in storing bitcoin holdings as part of the reserve, and have to adhere to certain requirements including security protocols. 

The Wyoming Republican, who has been a supporter of bitcoin for years, told The Block on July 27 that she would introduce the bill. Though she said the bill won't be signed into law this year, it could be considered following elections in November. 

Crypto has steadily become a rising topic ahead of those elections. GOP presidential candidate Donald Trump has pledged to end an "unlawful and un-American crackdown" on the U.S. crypto industry, while Vice President Kamala Harris' presidential campaign team has begun reaching out to ask questions about the cryptocurrency industry. 

Gold, petroleum, Bitcoin

The U.S. already has reserves in assets such as gold and petroleum, Lummis said in a statement on July 27. 

"Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come," Lummis said. 

The draft bill includes language around adjustments made to gold certificates. 

"Within 6 months of the date of enactment of this section, the Federal reserve banks shall tender all outstanding gold certificates in their custody to the Secretary," the draft bill read. "Within 90 days of the tender of the last such certificate, the Secretary shall issue new gold certificates to the Federal reserve banks that reflect the fair market value price of the gold held against such certificates by the Treasury, as of the date specified by the Secretary on each certificate."