{"id":4562,"date":"2024-12-21T04:01:59","date_gmt":"2024-12-21T04:01:59","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=4562"},"modified":"2024-12-21T04:01:59","modified_gmt":"2024-12-21T04:01:59","slug":"federal-reserve-to-own-bitcoin-senator-lummis-proposes-legislative-update","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=4562","title":{"rendered":"Federal Reserve To Own Bitcoin? Senator Lummis Proposes Legislative Update"},"content":{"rendered":"
\n

In an interview with Yahoo Finance, US Senator Cynthia Lummis of Wyoming outlined a proposal to grant the Federal Reserve the authority to hold Bitcoin as part of the United States\u2019 official reserves. She argues that this approach could improve the country\u2019s long-term financial stability, strengthen the global role of the US dollar, and provide a valuable hedge against the nation\u2019s ballooning national debt, which now surpasses 36 trillion dollars.<\/p>\n

Authority To Own Bitcoin<\/h2>\n

\u201cMy proposal would have the US purchase, through other assets it already owns, 200,000 BTC a year for five years, for a total of a million,\u201d Lummis reiterated her plans. \u201cWe would hold it for at least 20 years, and at the numbers that we project that would accrue a fund that\u2019s worth about 16 trillion dollars. We want our federal government to have a Strategic Bitcoin Reserve (SBR<\/a>) that can help back the US dollar, the world reserve currency, and then serve as a long-term savings account, thereby offsetting our national debt.\u201d<\/p>\n

The senator\u2019s remarks directly confront the current stance of Federal Reserve Chair Jerome Powell. At the latest Federal Open Market Committee press conference, Powell reiterated that the Federal Reserve Act restricts the institution from owning it. \u201cWe\u2019re not allowed to own Bitcoin. The Federal Reserve Act says what we can\u2019t own [it], and we\u2019re not looking for a law change. That\u2019s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,\u201d Powell remarked<\/a> on Wednesday.<\/p>\n

Lummis acknowledged this legal roadblock but remained determined to shift the conversation in Congress. She believes lawmakers need to give the central bank the authority to hold Bitcoin. \u201cI understand the Federal Reserve believes it doesn\u2019t have the legal authority to own Bitcoin,\u201d Lummis said. \u201cWe need to give that to them. The Bitcoin the US already owns, roughly 200,000 Bitcoin, are within the asset forfeiture fund, and it\u2019s important I think that we take that fund, scoop it over into a strategic Bitcoin reserve, and then add to it.\u201d<\/p>\n

Her proposal aligns with principles set forth<\/a> in the Bitcoin Act of 2024, introduced earlier this year. It seeks to establish a SBR in the US to enhance the national financial strategy. The Act involves setting up secure BTC storage facilities, purchasing 1 million BTC over five years, and funding these purchases through existing financial reserves without increasing taxpayer burden.<\/p>\n

\u201cIt absolutely is the right asset,\u201d she said, describing BTC\u2019s properties. \u201cIt is digital gold. It is a finite source\u2014only 21 million BTC will ever be mined. Even though it\u2019s slightly volatile, it\u2019s always volatile in an upward leaning direction, and so the goal here of holding it for 20 years is in recognition that on the short term, there is short-term volatility. In the long term, there is long-term growth that far exceeds the ability of the US dollar to keep up.\u201d<\/p>\n

Lummis cited historical growth trends to bolster her argument. Although Bitcoin has existed for only 15 years, she views its long-term trajectory as overwhelmingly positive. While she acknowledges that growth may slow from the early years\u2014declining from 55% annual growth to figures like 45% or 35%\u2014it would still, in her estimation, \u201ccontinue to grow, where the US dollar will continue to decline in value.\u201d She sees in these figures a bulwark against the inexorable erosion of purchasing power that comes with a currency deliberately managed to produce steady inflation.<\/p>\n

\n

\"\ud83c\uddfa\ud83c\uddf8\" Senator Lummis says she wants to give the Federal Reserve the authority to own Bitcoin.<\/p>\n

\u201cI want our federal government to have a Strategic Bitcoin Reserve \u2013 buying 200,000 $BTC<\/a> a year for 5 years, and holding it for 20 years.\u201d pic.twitter.com\/g0nVZWKtK7<\/a><\/p>\n

\u2014 Bitcoin Archive (@BTC_Archive) December 19, 2024<\/a><\/p>\n<\/blockquote>\n

At press time, BTC traded at $95,324.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

In an interview with Yahoo Finance, US Senator Cynthia Lummis of Wyoming outlined a proposal to grant the Federal Reserve the authority to hold Bitcoin as part of the United States\u2019 official reserves. She argues that this approach could improve the country\u2019s long-term financial stability, strengthen the global role of the US dollar, and provide […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-4562","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4562"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4562\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}