Lummis Bitcoin Reserve Plan Will Be Partly Funded by the Fed’s Gold Revaluation
U.S. Senator Cynthia Lummis' new Bitcoin reserve strategy will provide partial funding for purchasing cryptocurrencies by reevaluating the gold certificates held by the federal reserve system.The plan requires setting aside $6 billion from any net income sent by the Federal Reserve to the Treasury Department from the fiscal year 2025 to the fiscal year 2029 and reducing the Federal Reserve Bank's freely disposable surplus funds from $6.825 billion to $2.4 billion, which is the current level specified by the Federal Reserve Act.Under the plan, within six months of the legislation's enactment, the Federal Reserve Bank will submit all outstanding gold certificates to the Treasury Secretary. Within 90 days thereafter, the Treasury Secretary will issue new gold certificates reflecting the fair market value of gold. The Federal Reserve Bank will then "transfer the cash value difference between the new and old certificates to the Treasury Secretary."
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