Senator Cynthia Loomis Introduces Bitcoin Act to Build Reserves
Senator Cynthia Loomis from Wyoming recently introduced the Enhancing Innovation, Technology, and Competitiveness Through Optimizing Investments Nationwide (Bitcoin) Act. This bill aims to establish Bitcoin reserves in a manner similar to commodities like oil and gold. The proposed decentralized network of secure Bitcoin vaults overseen by the U.S. Treasury Department is designed to ensure the highest level of physical and cyber security for U.S. Bitcoin assets.
Bitcoin Price Drop Despite Loomis’s Proposal
Despite Senator Loomis’s proposal to purchase 1 million Bitcoins, equivalent to about 5% of the global supply, the price of Bitcoin has not seen a significant increase. The plan to fund the acquisition by reallocating existing Federal Reserve and Treasury resources underscores the bill’s emphasis on individual Bitcoin holders’ self-custody rights and the preservation of financial freedom for individuals.
Reactions to the Bitcoin Act
While Senator Loomis views the Bitcoin reserves as essential in the face of economic challenges like rising inflation and a mounting national debt, the bill has faced criticism. Some skeptics believe that a $70 billion investment in Bitcoin, though substantial, may not have significant strategic value when compared to the massive U.S. debt of $34 trillion. Critics like renowned author Paul Weiner doubt the effectiveness of the bill in addressing larger economic issues.
The Landmark Event in American Legislation
Despite the mixed reactions, the introduction of the Bitcoin Act marks a significant milestone in American legislative history. By incorporating digital assets into the country’s financial strategy, the bill initiates widespread debate among policymakers and economists about Bitcoin’s role in government fiscal strategies.