Senator Cynthia Lummis: U.S. Bitcoin Reserve Progress May Take Longer Than Expected

U.S. Bitcoin Reserve Progress Faces Delays

Senator Cynthia Lummis has cautioned that the establishment of a U.S. Bitcoin reserve may take longer than anticipated, suggesting that state-level initiatives could precede federal action. Speaking at a New York conference hosted by Anthony Pompliano, Lummis emphasized that states often serve as incubators for innovation, making them more likely to adopt a Bitcoin strategic reserve before the federal government.

Global Precedents and State-Level Momentum

Lummis pointed to international examples, such as the United Arab Emirates, which has already begun purchasing Bitcoin. She also noted that sovereign wealth funds worldwide, unencumbered by the bureaucratic processes of a democratic republic like the U.S., are moving swiftly to integrate digital assets. This highlights the competitive pressure on the U.S. to maintain its financial leadership in the evolving cryptocurrency landscape.

Background on the Proposal

The concept of a national Bitcoin reserve was first introduced by President Donald Trump and Senator Lummis at an industry conference in July. In January, Trump signed an executive order on cryptocurrencies, which included a feasibility study for creating a digital asset stockpile. While the order did not explicitly designate Bitcoin as the centerpiece of a national reserve, it underscored the growing recognition of digital assets in U.S. financial strategy.

As the U.S. navigates the complexities of cryptocurrency regulation and adoption, Lummis's remarks underscore the potential for state-level innovation to drive progress, even as federal efforts continue to unfold.