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United States’ strategic Bitcoin (BTC) reserve would be partly financed by revaluing gold certificates held by the Federal Reserve System, draft legislation shows.
According to a July 30 Coindesk report, U.S. Senator Cynthia Lummis’s draft legislation would finance a Bitcoin reserve in part by revaluing the Federal Reserve’s gold certificates. In a July 27 announcement, Lummis wrote that her legislation aims to:
Implement a 1-million-unit Bitcoin purchase program over a set period of time to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States.
An extensive plan for strategic Bitcoin reserve
Furthermore, she also intends to establish a decentralized network of United States Bitcoin vaults operated by the Department of Treasury and implement a one million unit Bitcoin purchase program for the United States to own 5% of the supply. Moreover, Lummis also wants the project to be paid for by Federal Reserve System diversification and to affirm self-custody rights for private Bitcoin holders.
Lummis has long been an ally for cryptocurrency proponents. Back in mid-May, she was among the key proponents of a motion to nullify the Securities and Exchange Commission’s (SEC) controversial crypto policy known as Staff Accounting Bulletin No. 121 (SAB 121).
Issued in 2022, SAB 121 required companies holding customers’ cryptos to record them on their balance sheets. This would have potential significant capital and tax implications for banks working with crypto clients.
Republicans argued that the SEC overstepped its authority by implementing the policy without following proper rulemaking procedures, a stance supported by the Government Accountability Office. The Biden administration vetoed the motion to nullify this measure shortly after. In his veto statement, President Biden wrote:
This Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues. This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices. […] My Administration will not support measures that jeopardize the well-being of consumers and investors.
