Sen. Cynthia Lummis (R-Wyo.) on Thursday backed a “budget-neutral approach” to building a Strategic Bitcoin (CRYPTO: BTC) Reserve, opposing the idea of purchasing additional BTC to address the mounting national debt.
Lummis Pushes For BITCOIN Act, Schiff Disagrees
In an X post, Lummis agreed with Treasury Secretary Scott Bessent, who said that the Treasury Department is “committed” to exploring budget-neutral pathways for expanding the stockpile.
“We cannot save our country from $37 trillion debt by purchasing more bitcoin, but we can revalue gold reserves to today's prices & transfer the increase in value to build SBR,” Lummis said.
The pro-cryptocurrency lawmaker advocated for the BITCOIN Act, a bill proposing the acquisition of 1 million BTC over five years, with a 20-year holding period, leveraging Federal Reserve remittances and other financial tools.
“I have a â‚¿ill for that,” Lummis said, responding to Bessent.
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Peter Schiff, a staunch Bitcoin critic, challenged Lummis’s argument about leveraging gold certificates, stating, “There is no increased value. The extra money would have to be printed into existence by the Fed. We don’t need to create more inflation to buy Bitcoin.”
A U-turn By Bessent?
Interestingly, Bessent categorically said just a few hours earlier that the government would not buy additional Bitcoin and would only use confiscated assets to build the reserve. He also voiced “doubt” that the government would revalue gold assets, as Lummis proposed.
Little has come from the executive side since President Donald Trump signed an order to establish a Bitcoin reserve earlier this year. Trump’s crypto advisor, David Sacks, said in May that the path to acquiring Bitcoin was ready, and it's just a matter of getting the Commerce Department and the Treasury Department "excited."
Last month, reports circulated that the U.S. Marshals Service, a Department of Justice agency, sold some BTC, but on-chain sleuths said nothing is conclusive until it was officially announced.
Price Action: At the time of writing, BTC was exchanging hands at $118,799.22, down 3.81% in the last 24 hours, according to data from Benzinga Pro.
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