Former President Donald Trump will speak to the crypto industry as part of the Bitcoin 2024 Nashville conference on July 27, but first up is a potentially watershed announcement from insiders indicating that Lummis, currently a Republican senator representing Wyoming, will put forth legislation to establish what is described as the United States’ first “Bitcoin strategic reserve,” with Bitcoin envisioned being integrated further within the U.S. economy. This move is expected to be announced just before Trump’s visit, hoping it will help bring him on board.
The three-day Bitcoin Conference is scheduled for July 25-27, called “Bitcoin 2024 Nashville”. It features several high-profile speakers such as Trump, Robert F. Kennedy Jr., whistleblower Edward Snowden, and famed Ark founder Cathie Wood. Sen. Lummis is a well-known Bitcoin supporter and has been working on Bitcoin legislation for some time. She has kept the exact details of her proposal under wraps.
Still, she is expected to lay out critical provisions before the 20,000 attendees on Friday. The Bitcoin Strategic Reserve bill would need the Federal Reserve to hold some of its assets in Bitcoin, much like it does with gold. This would permit the Federal Reserve to buy and hold Bitcoins to support or peg up the dollar against market fluctuations. Building up a Bitcoin reserve would be a sensible decision to ensure the dollar’s stability as Bitcoin adoption becomes inevitable.
What Happens If the Bitcoin Reserve Bill Passes?
In the past, central banks have held gold reserves to back up the value of their ever-depreciating currency. The USA leads the world in terms of gold reserves and holds 8,133.5 metric tonnes, which make up 70% of its foreign exchange reserves today. The U.S. dollar has long been backed by this enormous reserve of gold, providing it with considerable strength. The arrangement proposed by Senator Lummis is similar in design, and she viewed Bitcoin as a new financial reserve asset.
In March, Senators Lummis and Kirsten Gillibrand also introduced the bipartisan “Lummis-Gillibrand Payment Stablecoin Act,” which outlines a roadmap for stablecoins regarding regulations. This bill imposed maintenance of one-to-one reserves, preventing illicit use, and regulatory regimes on stablecoin issuers. It is said that the stablecoin law paves the way for creating a Bitcoin Strategic Reserve in the nation.
The Stablecoin Act could bring some form of crypto regulation into play, and yes, this is a good sign. However, if something as big as sac comes to pass, especially one tied to such an impactful milestone (imagine calling them quarterly funds with specific accounts, e.g., insurance accounts or retirement limits ), then it probably represents a more comprehensive push by the government stamps pushing Bitcoin onto mainstream” in central finance terms.
The well-known experts believe that we could see the bullish sentiment for Bitcoin, which will be heading the conference, and it would come as no surprise if such a big announcement paves the way for the BTC price to soar even more. However, the most important aspect to follow on July 27 is whether Senator Lummis can harness support from the world’s 50 million-strong crypto community and clinch Donald Trump’s endorsement.