FX168 Financial News Agency (Asia-Pacific) reported that on Thursday (January 9), renowned Fox News reporter Eleanor Terrett revealed that the US Senate is about to establish its first subcommittee specifically targeting Cryptos, confirming that Republican Senator Cynthia Lummis has been preliminarily selected as chair, having previously proposed the Bitcoin Act aimed at establishing a national Bitcoin strategic reserve for the USA.
Eleanor wrote: "Latest news, the US Senate Banking Committee is about to establish its first subcommittee specifically targeting Cryptos. This subcommittee will be established based on the Republican version of the House Financial Services Committee. A Senate aide confirmed that Lummis has been preliminarily selected as the chair of the subcommittee, awaiting a vote by the full committee."
(Source: Twitter)
"I heard that the vote to approve Lummis and the new Republican and Democratic members (still under determination) will take place in the coming days," she added.
Lummis's Bitcoin Act aims to establish a strategic Bitcoin reserve as an additional store of value to enhance the USA's balance sheet and ensure transparent management of the federal government's holdings of Bitcoin. Specifically, the bill will establish a decentralized network for a secure Bitcoin vault operated by the US Treasury, and ensure the highest level of physical and Cybersecurity for national Bitcoin holdings in accordance with statutory requirements.
(Source: Lummis official website)
In addition, the bill proposes to implement a plan to purchase 1 million Bitcoins within a certain period, to acquire approximately 5% of the total supply of Bitcoin, comparable in scale and scope to the USA's Gold reserves; to be paid through existing funds in the Federal Reserve System and the Treasury; confirming the self-custody rights of private Bitcoin holders and emphasizing that the Bitcoin strategic reserve must not infringe upon personal financial freedom.
Lummis pointed out in a post on Wednesday: "Before I entered the Senate, I had been focused on how Bitcoin can benefit the USA, and the 'Bitcoin Bill' is the way to achieve that."
She also shared a statement from billionaire Dan Morehead, who said: "The USA has stored $600 billion worth of Gold, now turning to digital Gold. Bitcoin, it's much better."
According to a commentary article from Bitcoin Magazine that Lummis shared, it mentioned a well-known American economist known as the 'currency doctor', Steve Hanke, a professor of applied economics at Johns Hopkins University.
The article stated that Hanke recently targeted the idea of the USA creating a Bitcoin strategic reserve. He claimed that converting government savings into Bitcoin would 'weigh down the economy,' as these savings would not be invested in 'real capital assets that produce goods.' He even further pointed out that Bitcoin would not build factories, create jobs, or drive innovation.
(Source: Twitter)
However, Bitcoin Magazine disagrees, emphasizing that the Bitcoin strategic reserve will not directly create jobs but can provide the USA with a means to hedge against inflation, dollar devaluation, and geopolitical risks.
(Source: Bitcoin Magazine)
Let's face reality— the US dollar is not as strong as it used to be, and as the world shifts towards decentralized currencies, Holding Bitcoin will provide a safety net for the USA. This is about preparing for the future, not clinging to outdated economic models,
Hank also forgot how reserves provide leverage. If Bitcoin becomes the world's most valuable asset and the USA establishes a Bitcoin strategic reserve, it will be in a leading position. This is not just a hedge, but a significant geopolitical advantage. It will enhance confidence in the American Financial system.
His view indicates that he does not understand the purpose of reserves. Reserves are for risk management and long-term Global Strategy, not for short-term job creation. Strategic Bitcoin reserves are not a burden on the economy; they are an innovative, forward-looking initiative.
