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Senator Lummis Proposes Selling Fed Gold to Buy Bitcoin Under BITCOIN Act

Nov 14, 2024, 11:50 PM

U.S. Senator Cynthia Lummis is advocating for a new proposal that would see the Federal Reserve sell part of its gold reserves to purchase Bitcoin. The initiative, known as the BITCOIN Act, aims to establish a U.S. 'Bitcoin strategic reserve' by acquiring 1 million BTC, approximately 5% of the total Bitcoin supply. Lummis argues that although gold has traditionally been a safe-haven asset, Bitcoin, often referred to as digital gold, is increasingly attracting interest. This proposal aligns with former President Trump's new vision for cryptocurrency. Lummis also emphasizes that this move would not add to the government deficit, as the funds would come from the sale of existing gold reserves. The legality of creating a strategic Bitcoin stockpile by executive action is also being examined. Market analysts suggest that Bitcoin prices could reach $100,000 – $120,000, supported by this narrative.