U.S. States ahead of Fed on Bitcoin reserve path: Lummis

by

Why Your State Might Just Become a Bitcoin Billionaire!

Picture this: over 30 U.S. states are suddenly having a collective epiphany about Bitcoin reserves, as if they all simultaneously discovered the joys of avocado toast. Yes, you heard that right! At least two of these states are practically sprinting towards legislation that would allow them to fund Bitcoin with public money. Because, why not? Who needs roads and schools when you can have digital gold? 💰

Meanwhile, in the hallowed halls of Washington, the policy makers are still playing a game of “who can ignore Bitcoin the longest.” Cynthia Lummis, the Wyoming Republican Senator and chair of the Senate Banking Subcommittee on Digital Assets, made this revelation during the New York Bitcoin Investor Week. It’s like watching a bunch of kids at a candy store, but no one wants to be the first to ask for a lollipop. 🍭

Utah and Arizona are leading the charge, proposing to buy Bitcoin with public funds. But not everyone is on board with this digital treasure hunt. Some lawmakers are clutching their pearls, worried about the risks of state-run Bitcoin reserves. Because, of course, the last thing we need is a state government dabbling in something as risky as cryptocurrency. Heaven forbid! 🙈

Since the dawn of the Trump era, states like Montana, North Dakota, and Lummis’ own Wyoming have turned their noses up at Bitcoin reserve bills. Their reasoning? Concerns over crypto speculation and the inherent risks of digital assets. This, despite the fact that Wall Street has been throwing nearly $100 billion at Bitcoin through exchange-traded funds. It’s like saying you won’t eat cake because you’re worried about the calories, while standing in a bakery. 🎂

In a bold move, Lummis introduced a bill that would have the Federal Reserve swap some of its gold reserves for Bitcoin. If this bill were to pass, the U.S. government would be on the hook to acquire up to 5% of Bitcoin’s total supply over five years. Talk about a gold rush! Or should we say a Bitcoin rush? 🏃‍♂️💨

At the White House, AI and crypto czar David Sacks confirmed Trump’s interest in a national Bitcoin reserve. But, spoiler alert: progress is still in its infancy, and the concept is still being evaluated. It’s like waiting for a sequel to a movie that may never come. 🎬

Lummis echoed this sentiment in New York, stating, “We don’t have enough people comfortable enough in the House and Senate to do this yet.” It’s like trying to convince your friends to jump into a pool when they’re all standing on the edge, nervously dipping their toes in. 🏊‍♀️

Stablecoins are likely to be the starter pistol for this digital asset race. Lawmakers in both the Senate and the House are presenting bills to standardize stablecoin rules. At the first Senate Banking subcommittee hearing focused on crypto rule-making, there was a rare moment of agreement: stablecoin regulations should be prioritized. It’s like finding out that everyone in the room actually likes pineapple on pizza. 🍍🍕

At today’s Subcommittee on Digital Assets hearing, @SenLummis talked about the importance of the GENIUS Act, bipartisan legislation that would establish a clear regulatory framework for stablecoins.

Watch ⬇️

— U.S. Senate Banking Committee GOP (@BankingGOP) February 27, 2025

Read More

2025-02-28 22:28