Here's the English translation:
Crypto-friendly Senator Cynthia Lummis stated this morning 6/4 that multiple high-ranking US military officials support establishing a "Bitcoin Strategic Reserve" to address potential US-China economic and military conflicts. The stablecoin bill 'GENIUS Act' is also expected to be voted on in the Senate soon.
Regarding concerns about Trump Media Company (DJT) raising funds to purchase Bitcoin potentially creating a conflict of interest, Lummis explained: "Trump's willingness to invest in the digital economy demonstrates forward-thinking vision."
Stablecoin Bill Likely to Pass Next Week, Revenue-Generating Stablecoins Still Under Discussion
Lummis first mentioned the GENIUS Act will begin voting this week, but due to multiple proposed amendments, voting will likely be delayed until next week. Addressing Democratic concerns about potential illegal financial activities, Lummis said initial consensus has been reached.
Variables still exist. Lummis noted the bill's passage depends on whether anyone attempts to forcibly include "credit card fee cap" provisions. If such provisions are added, it could derail the bill.
Regarding why the bill prohibits issuing revenue-generating stablecoins, Lummis candidly supports the concept but must exclude it to pass the bill. She suggested it might be re-discussed when sent to the House.
US Military Leadership Supports Bitcoin Reserve, Targeting National Debt Resolution
Notably, Lummis revealed US military leaders stationed in Southeast Asia believe the US should establish a "Bitcoin Strategic Reserve" to address potential US-China economic and military conflicts.
She suggested using crypto assets seized by US law enforcement as the first year's reserve foundation, then gradually converting other existing assets to BTC for long-term holding. Lummis's Bitcoin reserve goals include:
1. US government to hold 1 million BTC
2. Represent 5% of global Bitcoin supply, held for 20 years
3. Primarily resolve national debt issues
Congress Will Clarify Crypto Asset Regulatory Jurisdiction
Lummis indicated the Senate will focus on the "Market Structure Reform Act" to clarify which assets fall under Commodity Futures Trading Commission (CFTC) or Securities and Exchange Commission (SEC) jurisdiction:
- BTC is a commodity and should be regulated by CFTC
- Centralized exchanges like Coinbase and Kraken involving token issuance and trading should be SEC-regulated
She emphasized that stablecoin and market structure bills will be processed separately.
Lummis: Trump's Fundraising Shows Foresight, US Digital Reserve Considers Only Bitcoin
Addressing potential conflicts of interest with Trump Media Company raising $2.4 billion to purchase BTC, Lummis explained:
"This is no different from owning hotels and resorts. The key is its forward-thinking approach, early investment in digital assets."
She added that their models show Bitcoin prices will rapidly increase then stabilize, with 99% of BTC mined within the next 10 years, indicating significant growth potential.
She ultimately stressed that if the US establishes a digital asset reserve, it would only choose Proof of Work Bitcoin due to its irreplaceable scarcity and security.
(Trump Media Raises $2.44 Billion, Becoming Fourth Largest Bitcoin-Holding Public Company)
Risk Warning:
Cryptocurrency investments carry high risk with potential for significant price volatility. You may lose your entire investment. Please carefully assess risks.
Recently, Bitcoin reserve companies have emerged rapidly. Binance founder CZ believes these companies are taking risks and shared his risk management perspective. ABMedia also compiled these stocks' performance over the past month, with most experiencing explosive growth like newly launched meme coins. However, if based on unprofitable core business for publicity, stock prices often decline once initial hype subsides.Toggle
Binance Founder CZ: These Companies Are Taking Risks
Binance Founder CZ believes these companies are taking risks and shared his views on risk management as follows:
Every company takes risks, and risk is not black and white (0 or 1), but a range (0~100)
Find the most suitable risk/ROI ratio through proper balance
Risks must be managed, and not taking any risks is a risk in itself.
CZ did not express whether he agrees or disagrees with these BTC Treasury companies' approaches, but only encouraged everyone to manage risks rationally, rather than blindly avoiding risks.
BTC Treasury Company Stocks Like Meme Coins, Just a Fleeting Moment?
ABMedia compiled the stock gains of these publicly listed companies over the past month. Except for Where Food Comes From (WFCF) with a negative return and the veteran meme stock GameStop with only an 8.66% increase, other stocks have seen amazing gains of 60~816%. It appears that these companies' stocks are like newly born meme coins, easily soaring.
GameStop (GME): 8.66%
DDC Enterprise (DDC): 317%
ATAI Life Sciences (ATAI): 60%
Kindly MD (KDLY): 816%
Coinsilium Group (COIN): 125%
Where Food Comes From (WFCF): -9%
However, the author also reminds everyone that unless these companies can sustainably operate their BTC Treasury business with discipline like MicroStrategy and Metaplanet, most BTC Treasury companies are merely seeking attention based on unprofitable core businesses. Once the initial hype subsides after news release, their stock prices usually decline dramatically.
(Strategy Leads the Trend, A Comprehensive Guide to BTC Treasury Strategy Company Investments)
Risk Warning
Cryptocurrency investments are highly risky, with potentially volatile prices. You may lose all your principal. Please carefully assess the risks.
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
