Senator Lummis Pushes for Bitcoin Reserve via Gold Conversion

Jimmy Aki
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Wyoming Senator Cynthia Lummis suggested that the United States Treasury convert part of its gold holdings into Bitcoin to create a strategic reserve.

Challenges to Establishing a Bitcoin Reserve

According to Bloomberg, Lummis proposed leveraging gold certificates for Bitcoin purchases, avoiding the $90 billion cost of acquiring 1 million BTC at current market prices. This reserve, equivalent to 5% of Bitcoin’s total supply, would be held for 20 years to hedge against inflation and reduce national debt.

The United States currently holds the largest global gold reserves, approximately 8,133 metric tons. Lummis believes liquidating a portion of this gold to acquire Bitcoin could bolster financial stability without immediately impacting the Treasury’s balance sheet. Lummis has long advocated for the adoption of Bitcoin at the federal level.

She previously called for strategic Bitcoin purchases but had not detailed which assets would fund such acquisitions. In her latest remarks, she identifies gold as a feasible candidate for conversion.

She explained, “Families across Wyoming are struggling under inflation, and our national debt is at unprecedented levels. A Bitcoin reserve could provide stability and long-term financial solutions.”

Although the plan is ambitious, it faces hurdles. Critics highlight Bitcoin’s volatility and skepticism over its suitability as a reserve asset. Galaxy Digital CEO Mike Novogratz expressed doubts, stating, “It could cost $90 billion—small in terms of government spending—but the risk-reward ratio is uncertain.”

Additionally, holding a significant Bitcoin reserve may disrupt market dynamics. Some fear that U.S. government involvement in Bitcoin trading could lead to price fluctuations.

While supportive of crypto integration, Novogratz believes the proposed reserve is unlikely to gain traction under the Trump administration, despite growing state and federal interest in cryptocurrency adoption.

Pennsylvania Introduces State Bitcoin Reserve

Echoing Lummis’ federal initiative, Pennsylvania lawmakers have proposed a bill allowing the state Treasury to invest up to 10% of its funds in Bitcoin.

Republican Representative Mike Cabell introduced the Strategic Bitcoin Reserve bill, citing Bitcoin’s potential as a hedge against inflation and economic uncertainty. He noted that investment giants like BlackRock and Fidelity are adopting similar strategies.

If passed, the legislation, titled HB 2664, would enable Pennsylvania to allocate part of its $9.7 billion General Fund and $7 billion Rainy Day Fund to Bitcoin. Cabell’s co-sponsor, Representative Aaron Kaufer, endorsed the bill as part of broader state efforts to embrace cryptocurrency.

In October, Pennsylvania also passed the “Bitcoin rights” bill, establishing protections for self-custody and crypto payments.

As states like Pennsylvania push for Bitcoin adoption, the conversation around digital assets as legitimate financial tools is evolving.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.