According to a report from Fox, Senator Cynthia Lummis of Wyoming is reportedly set to introduce legislation that could herald a sea change in the status of Bitcoin, positioning it as mainstream. financial asset on a par with traditional reserves such as gold in the United States.
As anticipation builds for its possible announcement at the annual Bitcoin conference in Nashville, July 25-27, a wave of speculation surrounds the potential impact of the move.
Federal Reserve to Hold Bitcoin as Strategic Reserve Asset
According to reportSenator Lummis, a staunch cryptocurrency advocate and leading figure in the pro-crypto movement among US lawmakers, wants to unveil a bill that would require the Federal Reserve (Fed) to acquire and hold BTC as a strategic reserve asset.
While details of the proposed legislation remain shrouded in secrecy, insiders with knowledge of preliminary drafts of the bill told Fox that the bill aims to institutionalize Bitcoin under U.S. cryptocurrency law. monetary systemsimilar to the role played by traditional reserve assets in stabilizing the value of the U.S. dollar.
Despite challenges posed by skepticism and regulatory hurdles under the current administration, analysts and lawmakers believe that the potential integration of Bitcoin as a reserve asset represents a significant milestone in the evolution of crypto, signaling a further shift towards broader acceptance and recognition not only of BTC, but of the entire industry.
A game changer in cryptocurrency?
If the proposed legislation is supported by President Trump, who has also received recommendations and advice on the matter, with growing speculation that the former president could also announce A similar approach, the report notes, could serve as a watershed moment in recognizing Bitcoin’s legitimacy as a financial asset, coupled with the already successful ETFs approved in January.
The report further notes that supporters of the bill argue that accepting BTC as reserve asset This not only supports the stability of the U.S. dollar, but would also underscore the Federal Reserve’s commitment to embracing innovation.
This would be in stark contrast to what traditional people and crypto markets The challenges we’ve had in recent years under President Biden’s administration. Sam Lyman, director of public policy at bitcoin mining company Riot Platforms, told Fox:
Classifying the world’s largest cryptocurrency as a strategic reserve asset would kick off the “Bitcoin space race.” If the United States—the world’s richest country and home to global capital—started accumulating bitcoin on its balance sheet, other countries would have strong incentives to do the same.
Ahead of the highly anticipated conference, BTC continues to trade within its $65,900 to $68,000 range that has been established over the past few days.
Currently, the largest cryptocurrency in the market is registering slight gains of 0.4% in the last 24 hours. However, a drop in trading volume increased by 18%, amounting to $26 billion, according to CoinGecko. data.
Featured image of DALL-E, chart from TradingView.com
