US Senator Cynthia Lummis: The Federal Reserve should buy bitcoin

Quick Take

  • Cynthia Lummis, US Senator from Wyoming, has said that it would be a “great idea” for the Fed to buy bitcoin.
  • Lummis is pro-crypto. She first bought her bitcoin in 2013.

Cynthia Lummis, US Senator from the Wyoming state, has suggested that the Federal Reserve should hold bitcoin on its balance sheet.

Speaking on a panel hosted by the Orrin G. Hatch Foundation on Thursday, Lummis said, "I think it's a great idea to be honest" for the Fed to buy bitcoin as it holds over $40 billion in foreign currency reserves. Lummis was replying to a question by the panel moderator Matt Sandgren, executive director of the Hatch Foundation, who hosted the panel on the future of the crypto economy.

"Once there is a statutory and regulatory framework, that will make a lot of sense," said Lummis. "The fact that [bitcoin] is completely decentralized, is going to make it over time more ubiquitous, and I think it's going to be something that the Fed should hold on its balance sheet."

Randal Quarles, former vice chairman for supervision at the Fed, was also present on the panel, but he doesn't think that the central bank will add bitcoin to its balance sheet anytime soon.

"For a lot of political, economic reasons, I think that it's best to keep the Fed's balance sheet, which it isn't currently, [but] it needs to move more in that direction — [that is] entirely treasuries," said Quarles.

As for Lummis, she has been pro-crypto and a vocal advocate for the crypto industry for a long time. The lawmaker, 67, first bought her bitcoin in 2013, when its price was about $350. Bitcoin's price today is around $41,000.

Lummis disclosed on the panel that her son-in-law taught her how to purchase bitcoin. As for how she first got involved in crypto, Lummis said her previous job as Wyoming treasurer made her explore a mix of assets — some that could have led to short-term income and others that represented a store of value — and that's when she learned more about bitcoin and viewed it as a store of value.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy