Congress Debates Bill to Allow Fed to Hold Bitcoin: Loomis

Speaking in an interview with Yahoo Finance, Senator Cynthia Lummis outlined a plan to allow the Federal Reserve to buy and hold Bitcoin, integrating it as a key asset into the country’s financial strategy.

Federal Reserve Chairman Jerome Powell male At its recent meeting, the Federal Open Market Committee (FOMC) stated that the institution currently lacks the legal authority to own Bitcoin (Bitcoin). Loomis It aims to change This is through new legislation.

“I want to give it to them,” she told Yahoo Finance. Its proposal calls for the US government to purchase 200,000 bitcoins annually over five years — a total of 1 million bitcoins — and hold them for at least 20 years. Based on its projections, this reserve could grow to a value of $16 trillion over time.

“I want our federal government to have a strategic reserve of Bitcoin that can help support the US dollar,” Loomis said.

Reserve benefits

Loomis stressed that A Bitcoin reserve It could provide many benefits, including strengthening the US dollar and alleviating the challenges posed by the country’s large debt. The proposal also proposes transferring approximately 200,000 bitcoins from the US Asset Forfeiture Fund – seized during law enforcement operations – into the reserve.

Despite Bitcoin’s volatility, Loomis sees it as an ideal strategic asset, likening it to digital gold. “It is a finite resource – only 21 million bitcoins will ever be mined,” she said, underscoring its scarcity and the potential for its value to grow in the long term.