Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
---|
Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
---|
Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
---|
A new proposal to establish a U.S. strategic bitcoin reserve is gaining traction, as pro-Bitcoin (CRYPTO: BTC) Senator Cynthia Lummis (R-Wyo.) unveiled her plan at the Bitcoin Nashville conference on Saturday.
What Happened: She took the stage shortly after former President Donald Trump, the Republican nominee for the upcoming presidential election, who spoke about blockchain policy to a packed room of 8,500 attendees.
Trump, during his address, endorsed utilizing the U.S. government’s existing Bitcoin holdings, primarily acquired through criminal forfeitures and seizures, to establish the core of a new “strategic national bitcoin stockpile.”
The draft bill, informally titled the “Bitcoin Act of 2024,” outlines a framework where the Treasury Secretary would create a decentralized network of secure Bitcoin storage facilities across the U.S.
These locations would be chosen based on a comprehensive risk assessment, emphasizing geographic diversity, security, and accessibility, Coindesk reported.
Under the proposed legislation, the Treasury Secretary would also initiate a “Bitcoin Purchase Program” aiming to acquire up to 200,000 BTC annually over five years, totaling 1 million BTC.
These Bitcoin holdings would be kept for at least 20 years and could only be sold to pay off federal debt.
After this period, no more than 10% of the assets could be liquidated within any two-year span.
Also Read: What Is Going On With Bitcoin, Ethereum ETFs Ahead Of The FOMC Meeting?
Why It Matters: The funding for these Bitcoin acquisitions would come from several sources detailed in the draft bill.
One key method involves allocating $6 billion from net earnings remitted by the Federal Reserve to the Treasury from fiscal years 2025 through 2029.
Additionally, the discretionary surplus funds of Federal Reserve banks would be reduced from $6.825 billion to $2.4 billion.
A significant aspect of the plan includes the revaluation of the Federal Reserve banks’ gold certificates to their fair market value.
Within six months of the legislation's enactment, Federal Reserve banks would submit all outstanding gold certificates to the Treasury Secretary.
The Treasury Secretary would then issue new certificates reflecting the current market price of gold within 90 days.
The Federal Reserve banks would remit the difference in cash value between the old and new certificates to the Treasury Secretary.
As of July 24, the Federal Reserve banks held gold stock valued at $11 billion, based on the official U.S. book value of $42.22 per troy ounce.
However, the market value of gold is significantly higher, with current futures contracts trading around $2,400 per ounce according to MarketWatch.
The broader implications of such policies will be a major topic of discussion at Benzinga’s Future of Digital Assets event on Nov. 19.
Read Next: Russia Greenlights Crypto For Cross-Border Payments, Tightens Mining Rules
Image: Shutterstock
Posted In: $BTC