US Senator Cynthia Lummis has reintroduced the BITCOIN Act, allowing the government to hold over 1 million Bitcoin as a strategic reserve. This legislation directs the acquisition of 200,000 Bitcoin annually for five years, totaling 1 million Bitcoin, funded by diversifying existing Federal Reserve and Treasury resources. The act also permits additional Bitcoin from various sources, including gifts and state contributions, stored in a segregated account. Lummis aims to secure the nation’s financial future through this initiative, emphasizing the potential of digital innovation to manage national debt. Several Republican senators support the bill, citing its role in maintaining financial innovation and economic security. The bill introduces a formal evaluation process for Bitcoin forked assets, allowing for the retention of valuable assets post-mandatory holding periods. This move follows President Trump's recent executive order to create a Strategic Bitcoin Reserve, using forfeited cryptocurrency from civil and criminal cases. The reserve aims to grow without selling stashed Bitcoin, seeking budget-neutral methods for expansion.

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