Congress discussing bill to allow Fed to hold Bitcoin: Lummis

Speaking in an interview with Yahoo Finance, Senator Cynthia Lummis outlined a plan to authorize the Federal Reserve to purchase and hold Bitcoin, integrating it as a key asset in the country’s financial strategy. Federal Reserve Chairman Jerome Powell stated in his recent FOMC meeting that the institution currently lacks the legal authority to own Bitcoin ( BTC ). Lummis aims to change that through new legislation. “I want to give it to them,” she told Yahoo Finance. Her proposal envisions the U.S. government purchasing 200,000 Bitcoin annually over five years — totaling one million Bitcoin — and holding it for at least 20 years. Based on her projections, this reserve could grow to a value of $16 trillion over time. “I want our federal government to have a strategic Bitcoin reserve that can help back the US dollar,” Lummis said. You might also like: Blockaid new dashboard to track Web3 activity and threats Benefits of the reserve Lummis emphasized that a Bitcoin reserve could provide several benefits, including strengthening the U.S. dollar and mitigating the challenges posed by the nation’s significant debt. The proposal also suggests transferring approximately 200,000 Bitcoin from the U.S. Asset Forfeiture Fund — seized during law enforcement operations — into the reserve. Despite Bitcoin’s volatility, Lummis views it as an ideal strategic asset, likening it to digital gold. “It is a finite source — only 21 million Bitcoin will ever be mined,” she said, underscoring its scarcity and potential for long-term value growth. You might also like: Hawk Tuah Hailey Welch sued over $50m meme coin debacle