Senator Cynthia Lummis of Wyoming has been appointed by Senate Banking Committee Chairman Rick Scott to chair the Senate Banking Subcommittee on Digital Assets.
According to Lummis, the subcommittee has two main goals: to pass comprehensive digital asset legislation and to conduct federal oversight of regulatory agencies to protect against overreach.
Lummis' digital asset bill is expected to include:
- Market structure legislation
- Clear regulations for stablecoins
- Regulations for a strategic Bitcoin reserve
"If the United States wants to maintain its global leadership in financial innovation, Congress needs to urgently pass bipartisan legislation to establish a comprehensive legal framework for digital assets, enhancing the value of the USD with a strategic Bitcoin reserve."
Lummis' statement has stirred up rumors and hopes that a strategic Bitcoin reserve will soon be announced.
Former Binance CEO Changpeng Zhao stated that Lummis' appointment suggests that a US strategic Bitcoin reserve is almost confirmed.
Senator Lummis' strategic Bitcoin reserve bill. Source: Cynthia Lummis
Strategic Bitcoin reserve gains attention, but doubts remain
Several US states, such as Pennsylvania, Texas, Ohio, New Hampshire, and Senator Lummis' home state of Wyoming, have introduced legislation on a strategic Bitcoin reserve.
Coinbase CEO Brian Armstrong recently called for countries to establish a strategic Bitcoin reserve in a January 17 blog post.
"The next arms race will be in the digital economy, not in space. Bitcoin could be the foundation for the global economy like gold," Armstrong wrote.
At a digital assets panel at the World Economic Forum conference in Davos, Switzerland, TinTucBitcoin editor Gareth Jenkinson asked Armstrong about the prospects of a US strategic Bitcoin reserve.
The Coinbase CEO responded that the idea is still "alive and growing" despite recent attention being focused on memecoins and social Tokens.
Coinbase CEO Brian Armstrong at the World Economic Forum's cryptocurrency panel. Source: Gareth Jenkinson
CryptoQuant CEO and market analyst Ki Young Ju had a different view in December 2024, stating that the likelihood of a US strategic Bitcoin reserve depends on the US economic condition.
The analyst opined that former President Donald Trump's support for Bit could conflict with the commitment to strengthen the USD and the US position in international trade.
A strong economic position could make it unlikely for the US President to adopt a strategic Bit reserve, Ju wrote.
Additionally, President Trump may abandon his crypto-friendly stance if the USD continues to gain strength against other currencies in the international market.
