Bitcoin Act Plans U.S. Strategic Reserve with Crypto Leaders

The U.S. lawmakers are now working with some top crypto leaders to push forward the BITCOIN Act. Which is a bill that could create a huge national Bitcoin reserve. As reported by Cointelegraph, famous crypto figures like Michael Saylor and Tom Lee will meet with the lawmakers soon to discuss the plan. 

This move comes after President Trump had announced his support for a Strategic Bitcoin Reserve. An idea that could make Bitcoin a key part of America’s financial plans for the future.

What the BITCOIN Act Proposes

The BITCOIN Act that was introduced by Senator Cynthia Lummis, shows quite a strong plan. It is suggesting that the U.S. government should buy one million Bitcoins in the next five years. And these Bitcoins would be locked in a Strategic Bitcoin Reserve and kept for at least 20 years.

The only time the government could take these coins earlier would be if they need to pay any national debt. Lawmakers say that this plan could keep the U.S. safe from inflation and make its financial system stronger. 

How the U.S. Could Pay for It

But there is a main problem. Which is, how can the government afford to buy so much Bitcoin without increasing the budget deficit? Lawmakers and the experts are thinking of many different ideas:

• Revaluing gold certificates: The U.S. has a lot of gold reserves, and their recorded value has not been updated for decades. So by revaluing these certificates, the Treasury could use any extra value to buy Bitcoin.
  
• Tariff revenue: Extra income from trade tariffs could also help to pay for the reserve.
  
• Seized Bitcoin: The government already has Bitcoin that they seized from crimes. These coins could simply be added straight to the reserve.

Who Is at the Table

There are a few big names from the crypto and finance world. Michael Saylor of MicroStrategy and Tom Lee of Fundstrat are two of the most famous figures. The executives from CleanSpark, Marathon Digital and Bitdeer are also expected to be joining.

And no, traditional finance is not left out. Representatives from Western Alliance Bank and a lot of investment firms are also a part of the discussion. By including a mix of different voices, the lawmakers aim to cover everything. Be it from mining and custody to regulation and market stability.

Why This Matters

If the BITCOIN Act passes, the U.S. would become one of the first nations to officially have Bitcoin as a key asset. This move could change how the other countries see Bitcoin and make them start their own reserves too.

Supporters believe that the Act could:

• Help to protect against inflation.
  
• Boost confidence in Bitcoin and crypto markets.
  
• Encourage innovation in digital finance.
  

But the critics see more risks. Bitcoin is still pretty volatile and prices can fall and rise any time. The government would also need very strong systems to keep the coins safe. And in case the price falls, the taxpayers could blame the lawmakers for wasting billions.

Looking Ahead

This upcoming talk shows that the idea is getting more famous. Lawmakers want the direct advice from the industry leaders on how to make the reserve actually work. 

The next few months will be pretty important. If lawmakers and executives find a clear path, the BITCOIN Act could become a law soon. And if it is passed, the U.S. would start one of the biggest financial experiments in history.

For the supporters, it is a bold bet on the future of money. And for the critics, it is a risky bet with taxpayers money. But either way, the world is watching closely to see if America will actually build a Strategic Bitcoin Reserve.