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US Senate Reviews Bitcoin Act of 2024, Proposed By Senator Lummis As BTC Value Soars Past $93K

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Key Insights:

  • The Bitcoin Act proposes annual purchases of 200,000 Bitcoins, aiming to integrate cryptocurrency into US national reserves over five years.
  • Senator Lummis highlights BTC as a key asset for diversifying reserves and boosting economic stability amid rising global crypto adoption.
  • Bitcoin’s price surge to $93,000 sparks market interest as the US debates integrating digital assets into its financial policy framework.

The US Senate is now required to review the “Bitcoin Act of 2024” by senator Cynthia M. Lummis. The bill aims to create a ‘Strategic Bitcoin Reserve’ as BTC surges to $93,000. The bill also provides for the annual acquisition of up to 200,000 Bitcoins to diversify economic assets and reserves for the next 5 years.

Overview of the Bitcoin Act of 2024

Currently the United States Congress is discussing the “Bitcoin Act of 2024” initiated by senator Cynthia M. Lummis. This legislation which is referred to as S4912 seeks to create a Strategic Bitcoin Reserve. The legislation takes place at a time when the value of BTC has soared past $93,000. This act has drawn a lot of attention because of its potential to change the U.S financial system and the cryptocurrency industry.

The bill proposes the annual purchase of up to 200,000 Bitcoins for the next 5 years with an aim to accumulate 1 million BTC. The planned purchases are meant to minimize market disruption on transactions. Additionally, the legislation proposes that the purchases should be conducted transparently and the BTC to be held in trust for the United States.

Bill’s Impact on National Financial Policy After Congress Proceedings

The Bitcoin Act of 2024 is a major step towards the integration of BTC into the national reserve of the United States which has traditionally been held by gold. Moreover, Senator Lummis described the purchase and integration of BTC in the financial system as important to the diversification of the national reserve. Further, she notes that it will strengthen national security and enhance economic stability. This initiative presents BTC as a strategic investment asset during economic uncertainties. 

The bill has been read twice and referred to the Committee on Banking, Housing, and Urban Affairs. If the bill is passed and enacted into law, it would set the United States as world cryptocurrency capital. This comes in line with various crypto friendly regulations following the re-election of Donald Trump as United States president.

Market Reaction To S4912 Legislation

There has been a positive market response to the legislation with BTC maintaining its bullish trend due to acceptance of cryptocurrency in the financial sector. There is increased debate on the global  acceptance and adoption of cryptocurrencies in government’s economic policies. The outcome of the Bitcoin Act of 2024 ‘S4912’ could bring about conducive cryptocurrency regulations.

Following this legislative process, it is evident that there is an increase in utilization of digital assets in financial management. Thus the United States becomes the pioneer in such cryptocurrency regulations. If the bill is passed, it will redefine the regulation of digital assets in international finance.

Senator Lummis Highlights Crypto’s Economic Promise Amid Regulatory Progress and Legislative Victories

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United State­s Senator Cynthia Lummis recently highlighte­d the potential of the crypto marke­t to boost the nation’s economy, emphasizing that the nation must be­ willing to recognize and take advantage­ of these new opportunitie­s. Lummis has long been a vocal supporter of cryptocurre­ncy, consistently informing Congress about the importance­ of virtual currencies.

Lummis refle­cted on the progress made­ since her tenure­ in the Senate be­gan, highlighting the lack of understanding surrounding digital assets upon he­r arrival. 

When I came to the US Se­nate, nobody knew anything about digital assets, no one­ knew the differe­nce betwee­n Bitcoin (BTC) and alternative coins. So we’ve­ worked hard to educate me­mbers of the Senate­, Lummis shared.

Togethe­r with Senator Kirsten Gillibrand and other colle­agues, Lummis has been instrume­ntal in the formation of a financial innovation caucus and the development of frame­work for regulating the­ rapidly growing crypto sector. Highlighting the usefulne­ss of Bitcoin as both a form of investment and a method of payme­nt, Lummis highlighted its increasing acceptance­, especially in the face­ of concerns about worldwide inflation.

US Legislative Progress Fuels Crypto Optimism

In addition, Lummis stresse­d the increasing popularity of Ethere­um, highlighting it as a flexible blockchain that can handle a wide­ range of applications. The US virtual currency marke­t has made significant strides with the approval of Bitcoin and Ethe­reum spot ETFs by the SEC and the move­ment forward of many pro-crypto bills, suggesting improved regulatory conditions as we­ll as bipartisan support.

A significant legislative­ achievement include­s the House of Repre­sentatives’ approval of the Financial Innovation and Te­chnology for the 21st Century Act (FIT21), with bipartisan backing. The Se­nate’s decision to overturn Gary Ge­nsler’s Staff Accounting Bulletin No. 121 (SAB 121) has also ease­d the way for banks to act as crypto custodians.

As the US Pre­sidential elections approach, the­ narrative around crypto continues to evolve­. The prospects are bright for more­ widespread incorporation of digital assets into the­ economy. However, this optimism is not unive­rsally shared within the crypto community.

Popular Bitcoin advocate Samson Mow has e­xpressed skepticism re­garding politicians’ involvement in the se­ctor. Despite politicians’ attempts to bring about le­gal clarity, for Mow, the possibility remains that political involveme­nt could negatively impact Bitcoin. He warne­d that without a strong commitment to Bitcoin’s core principles, political e­ngagement might lead to proble­ms similar to the FTX, Luna, and Genesis collapse­s, which had caused significant financial losses.

A crypto enthusiast re­sponded to this view, saying that some pe­ople have abused the­ popularity of Bitcoin to spread false information and use marke­t fall or decrease as a basis for e­mergency actions against cryptocurrencie­s. Mow then explained that he­ wasn’t pointing a finger at pro-crypto personas, such as Senator Cynthia Lummis, whom he­ praised for her remarkable­ work to promote crypto adoption under strict regulation.

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US Secretary softens stance on crypto but has “a little bit of skepticism”

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U.S Secretary of the Treasury Janet Yellen acknowledged the benefits associated with cryptocurrencies, stating that the Treasury favored regulation that supports innovation in the space. Yellen in an interview on CNBC Friday said that crypto has grown by leaps and bounds, and is now playing a significant role mainly in investment decisions for Americans.

Admitting the growing role of the digital asset industry in the current landscape, Yellen who is also an economist and educator noted, “We recognize the innovation in the payment system can be a healthy thing,”

In early March, President Biden issued an executive order on cryptocurrencies that focused on consumer protection and the mitigation of crimes related to digital assets. Yellen then announced that the treasury is working to bolster itself against cyberattack threats.

“Cyber is a real risk and we recognize we have vulnerabilities, and we’re doing everything we can to be prepared to deal with that, and up to our defense,” Yellen said. The 78th secretary was known for being a vocal critic of the broader cryptocurrency industry during her time as Federal Reserve chair when in 2018, stated that she was “not a fan” of bitcoin.

The growing adoption of crypto might have softened her stance towards the industry. Yellen said she now has only “a little bit of skepticism,” citing concerns about financial stability, consumer investor protection, and crypto’s use for illicit transactions.

US President’s executive order signals regulations are on the way

Yellen’s gradual positive comments poured after the Biden Administration’s executive order earlier this month called for a “whole-of-government” approach to regulating crypto, which acknowledged the need to promote the important innovation that might come from the sector.

A year ago, Yellen, who is a Joe Biden’s pick for the Treasury Secretary sent shivers down investors’ spines when she proposed during her confirmation hearing that the use of digital currencies should be restricted as part of a wider clampdown on money laundering and terrorism financing. In February she again tested the industry’s nerve by issuing a warning that bitcoin is an “extremely inefficient” way to conduct monetary transactions.

Crypto.com Expands Its Offering Into US Market; More Details

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Singaporean crypto exchange Crypto.com has now made its grand entry as it prepares the initial rollout of its services to users in the United States. Based on an announcement post on its website, the trading platform revealed that it is already open to waitlisted users, and would incorporate more clients in the coming months.

In accordance with the blog, VIP users will have access to events, rewards, and market insights. Moreover, the trading platform promised to provide these users access to exclusive forums. At the moment, those features can only be used by selected institutional investors. But assured others that they are working to make it available to more people very soon.

Elated on the launch, Kris Marszalek, the CEO of the platform said,

“We are excited to be expanding our offering for professional traders to the U.S. Crypto.com Exchange will support U.S. institutional investors through this initial launch phase. We are looking forward to rolling it out to everyone as soon as possible.”

Crypto.com Massive Marketing Push

The crypto exchange had embarked on a string of aggressive marketing efforts, last year. The platform has invested $100 million in the campaign, which covered more than 20 countries and ran for “several months.” Entitled “Fortune Favors the Brave”, the ad starred Hollywood biggie Matt Damon and is directed by Oscar-winning cinematographer Wally Pfister.

The privately-owned Singapore firm has managed to seep into the mind of everyday Americans by betting high on sports advertising. As a matter of fact, Super Bowl advertising reaches around 100 million viewers. Utilizing this strategy, the platform demonstrated its marketing prowess with a commercial on Sunday’s Super Bowl and a $700 million deal last year to rename the Staples Center in Los Angeles as the Crypto.com Arena.

https://youtube.com/watch?v=2lc3ltA1yFo

Not only that, the trading platform went on a series of high-profile partnerships including one announced last month with basketball superstar Lebron James of the Los Angeles Lakers, who will play their home games at the Crypto.com Arena. Its Super Bowl ad featured James telling a younger version of himself: “If you want to make history, you gotta call your own shots.”

U.S Crypto: 72% of North America Favors Bitcoin; Only 11% Activity in Altcoin

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The United States of America is undoubtedly one of the most active regions in the world in terms of cryptocurrency traffic. Although regulatory wise, the U.S government‘s stance is still not clear on crypto assets, volume-wise, U.S is one of the largest active nations.

Now, according to Chainalysis’s recent report, the North American region is only 3rd in the world in terms of crypto trading volume, behind the markets facilitated in East-Asia and Western Europe. U.S based addresses accounted for 14.8% of all crypto activity in the past 12 months and the report indicated that its market had an “extremely active” professional market. What it meant was that the transactions taking place in and out of the U.S were not for small amounts of capital.

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As suggested in the above illustration, 90% of U.S digital assets transfer came from professional traders, which chainalysis categorizes as transactions worth over $10,000. The report added,

“Starting around December 2019, the share of North America’s total value transferred made up of transfers above $1 million rises from 46% to a high of 57% in May 2020. That corresponds with the jump in the overall professional market share of North America activity rising from 87% in December 2019 to a high of 92% in May 2020.”

Institutional Investors interest growth in the U.S

Aside from an active professional market, the growth of Institutional investors has also been gaining traction in the market. Fidelity Investments June 2020 survey listed that out of 800 accredited investors across the United States and Western Europe, around 36% were involved in digital currencies. The rest of the investors indicated their intrigue as well, with many suggestive that they could potentially add cryptocurrencies to their portfolios.

Fidelity’s very own Digital Assets Platform is also currently active in assisting institutional investors with their demand and crypto custody.

Bitcoin remains the most popular, followed by Stablecoins

Without a surprise, Bitcoin remains the poster boy of digital assets, as every major region involved with digital assets, were dominated with Bitcoin activity over other assets.

Surprisingly, Stablecoins took the 2nd place in the charts outperforming the huge collective of altcoins in the U.S market. The report added,

“Bitcoin makes up the biggest overall share of North American cryptocurrency activity, accounting for 72% of all transaction volume. Altcoins (not including stablecoins) make up just 17% of activity in North America, compared to 33% in East Asia.”