US Senator Cynthia Lummis has reintroduced the BITCOIN Act, a bill that would enable the US government to hold over 1 million Bitcoin in its reserves.
The legislation proposes acquiring BTC through annual purchases, legal forfeitures, and state contributions, aiming to strengthen the country’s economic position and financial innovation.
Background
- The BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025) was first introduced in July 2024 and has now been reintroduced with expanded provisions.
- The bill directs the US government to buy 200,000 BTC per year for five years, leading to a 1 million Bitcoin reserve funded by reallocating existing Federal Reserve and Treasury resources.
- Unlike the original version, the new act permits the US to hold even more Bitcoin through alternative means, such as:
Civil and criminal forfeitures
Gifts or donations
Transfers from federal agencies
US states voluntarily contributing their Bitcoin holdings
- Bitcoin obtained from state governments will be stored in a segregated account within the reserve.
- The bill also introduces a formal evaluation process for Bitcoin forked and airdropped assets, allowing the government to retain only the most valuable asset based on market capitalization after a mandatory holding period.
- The proposal aligns with President Trump’s recent executive order, which established a Strategic Bitcoin Reserve and Digital Asset Stockpile to manage confiscated cryptocurrencies.
Why should you pay attention?
- If passed, this bill would make the US the largest Bitcoin holder globally, positioning BTC as a strategic national asset.
- The legislation marks a significant shift in US financial policy, embracing Bitcoin as a hedge against national debt and economic instability.
- Unlike previous crypto regulations, the act actively supports Bitcoin accumulation, rather than imposing restrictions or selling off government-held assets.
- The move could impact Bitcoin’s price and overall market sentiment, as a structured government accumulation plan may reduce BTC supply over time.
- The bill’s co-sponsors include multiple Republican Senators, signaling growing bipartisan interest in integrating Bitcoin into US financial policies.
Who said what?
- Senator Cynthia Lummis emphasized Bitcoin’s role in the economy, stating:
“By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy.”
- Senator Jim Justice, a co-sponsor, highlighted Bitcoin’s strategic importance, saying:
“This bill represents America’s continued leadership in financial innovation, bolsters both our economic security, and gives us an opportunity to wrangle in our soaring national debt.”
Zooming out
- The US government’s increasing interest in Bitcoin reflects a broader trend of national adoption of digital assets.
- If the bill is enacted, it could set a global precedent for governments integrating Bitcoin into national reserves.
- Other nations may follow suit, potentially accelerating Bitcoin’s mainstream adoption as a recognized reserve asset.
- Bitcoin’s price and volatility could be influenced by the government’s structured accumulation plan, which may reduce available market supply.
- The political landscape around crypto is shifting, as major policymakers push for Bitcoin-friendly legislation that frames it as a strategic economic tool rather than a speculative asset.
