Senator Cynthia Lummis, R-Wyo, has introduced a bill to the U.S. Senate aimed at creating a national Bitcoin reserve, reflecting the growing political interest in the cryptocurrency industry. The bill, named the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024, seeks to reinforce the U.S. dollar’s position within the global financial system.

Lummis proposed the bill at the annual Bitcoin conference in Nashville, Tennessee. However, the proposed legislation is not expected to be voted on until after the U.S. Presidential election.

If enacted, the BITCOIN Act of 2024 would create a strategic Bitcoin reserve to enhance America’s financial standing globally. The bill equates Bitcoin to gold reserves, positioning it as a digital-era asset that could bolster U.S. financial leadership and security in the 21st-century economy. It also mandates transparency in the U.S. Treasury Department's management of the $65 million worth of Bitcoin it plans to acquire.

Senator Lummis is advocating for experts and stakeholders to contribute to discussions on how the BITCOIN Act would function if passed. Importantly, the bill does not propose making Bitcoin legal tender or mandate its use for transactions. Instead, it focuses on exploring Bitcoin as a strategic resource and asset for the United States.

However, the Act faces significant challenges in a divided Congress during a highly contentious Presidential race. Bitcoin has already become a partisan issue in the 2024 election season. Former President Donald Trump expressed support for cryptocurrency at an event in Mar-a-Lago in May, while prominent Democrats like Massachusetts Senator Elizabeth Warren and California Congressman Brad Sherman have criticized Bitcoin, labeling it a tool for criminals and a threat to the U.S. dollar’s dominance. Vice President Kamala Harris’s campaign is reportedly engaging with the crypto industry to better understand Bitcoin, especially after Trump's endorsement.