-
The
purchase
of
bitcoin
for
a
new
strategic
reserve
would
be
financed
partly
by
revaluing
Federal
Reserve’s
gold,
according
to
draft
legislation
from
U.S.
Senator
Cynthia
Lummis’s
office. -
The
plan
proposes
establishing
a
“Bitcoin
Purchase
Program”
of
up
to
200,000
BTC
a
year
over
a
five-year
period.
U.S.
Senator
Cynthia
Lummis’s
plan
for
a
new
Strategic
Bitcoin
Reserve
would
finance
purchases
of
the
cryptocurrency
partly
by
revaluing
gold
certificates
held
by
the
Federal
Reserve
System,
according
to
a
draft
of
the
legislation
obtained
by
CoinDesk.
Lummis,
a
Wyoming
Republican
who
is
known
for
her
Bitcoin-friendly
policy
stance,
announced
her
intention
to
propose
the
reserve
on
Saturday
at
the
Bitcoin
Nashville
conference.
She
came
onstage
just
minutes
after
former
U.S.
President
Donald
Trump,
the
Republican
nominee
in
this
year’s
presidential
race,
delivered
a
speech
on
blockchain
policy
before
the
cheering
room,
filled
to
its
8,500-person
capacity.
Trump,
during
this
speech,
endorsed
using
the
U.S.
government’s
existing
bitcoin
holdings
–
primarily
obtained
through
forfeitures
and
seizures
related
to
criminal
cases
–
to
form
the
“core”
of
a
new
“strategic
national
bitcoin
stockpile.”
According
to
the
draft
bill,
under
the
working
short
title
of
“Bitcoin
Act
of
2024,”
the
Treasury
secretary
would
“establish
a
decentralized
network
of
secure
Bitcoin
storage
facilities
distributed
across
the
U.S.,”
selecting
the
locations
for
the
vaults
“based
on
a
comprehensive
risk
assessment,
prioritizing
geographic
diversity,
security
and
accessibility.”
The
Treasury
secretary
would
establish
a
“Bitcoin
Purchase
Program”
of
up
to
200,000
BTC
a
year
over
a
five-year
period,
for
a
total
of
1
million,
according
to
the
draft.
The
bitcoin
would
be
held
for
at
least
20
years
and
could
only
be
disposed
of
for
the
purpose
of
paying
off
federal
debt.
After
that,
no
more
than
10%
of
the
assets
could
be
sold
during
any
two-year
period.
The
bitcoin
purchases
would
be
financed
through
a
few
methods,
describe
in
the
draft
bill
as
“offsetting
the
cost
of
the
Strategic
Bitcoin
Reserve.”
The
plan
calls
for
the
setting
aside
of
$6
billion
from
any
net
earnings
remitted
by
Federal
Reserve
to
the
Treasury
from
fiscal
years
2025
through
2029,
and
it
would
reduce
the
discretionary
surplus
funds
of
Federal
Reserve
banks
to
$2.4
billion
from
$6.825
billion,
the
level
that’s
currently
stipulated
in
the
Federal
Reserve
Act.
Revaluing
the
Fed’s
gold
There’s
also
the
revaluation
of
Federal
Reserve
banks’
gold
certificates
to
reflect
their
fair
market
value.
Under
the
plan,
within
six
months
of
enactment
of
the
legislation,
Federal
Reserve
banks
would
tender
all
of
their
oustanding
gold
certificates
to
the
Treasury
secretary.
Within
90
days
after
that,
the
Treasury
secretary
would
issue
“new
gold
certificates
to
the
Federal
Reserve
banks
that
reflect
the
fair
market
value
price
of
the
gold.”
The
Federal
Reserve
banks
would
then
“remit
the
difference
in
cash
value
between
the
old
and
new
certificates”
to
the
Treasury
secretary.
