Sen. Cynthia Lummis Reintroduces the BITCOIN Act of 2025
Senator Cynthia Lummis reintroduced the BITCOIN Act of 2025, aiming to establish a U.S. Strategic Bitcoin Reserve. The bill will head to the Senate for debate alongside a similar House version.
At the Bitcoin Policy Institute’s “Bitcoin for America” summit in Washington, D.C., Senator Lummis announced the BITCOIN Act of 2025. This initiative seeks to integrate Bitcoin (BTC) into U.S. financial reserves.
The bill follows President Trump’s executive order that created a reserve using confiscated Bitcoin from federal seizures. Initially introduced in 2024 but failing to pass, it returns with modifications and increased support from key Republican senators.
Lummis, a long-time Bitcoin advocate, stressed the bill’s significance, asserting:
> “Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century.”
The legislation is backed by Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. In the House, Congressman Nick Begich introduced a companion bill, supported by six Republican co-sponsors.
Begich described the initiative as a “bold and forward-looking legislative effort” to maintain U.S. dominance in the global digital economy.
Trump’s Executive Order: A Foundation
Recently, President Trump signed an executive order establishing a Strategic Bitcoin Reserve, allocating 200,000 BTC valued over $16 billion. These assets are under federal control, but future administrations could reverse the policy without congressional legislation.
The BITCOIN Act aims to institutionalize Bitcoin within the U.S. Treasury, encouraging active accumulation rather than reliance on asset seizures.
Michael Saylor of Strategy (formerly MicroStrategy) expressed support for Lummis’ position, stating:
> “The Strategic Bitcoin Reserve represents a strategy for United States digital supremacy in the 21st century.”
If passed, the bill would require the government to acquire BTC via Federal Reserve remittances and Treasury funds, without taxpayer funding.
One Million Bitcoins? The U.S. Strategy
The BITCOIN Act of 2025 seeks to legally establish a Bitcoin reserve, making it less vulnerable to policy reversals. The plan involves purchasing 200,000 BTC annually for five years, totaling one million Bitcoins by 2029. These assets will be held for a minimum of 20 years and will be managed by the Treasury,
Funding for acquisitions will come from Federal Reserve remittances, gold certificates, and Treasury assets without taxpayer dollars. Trump’s crypto policy advisor, David Sacks, reassured:
> “This will not cost taxpayers a dime.”
Can Bitcoin Improve America’s Balance Sheet?
A recent report from VanEck, a $115 billion asset manager, posits that if the U.S. holds one million BTC until 2049, the reserve could be valued at $42.4 trillion. This could offset 35% of the projected national debt, enhancing the U.S. fiscal stance. Even under conservative estimates, Bitcoin could cover at least 18% of U.S. debt if growth continues. However, critics caution about Bitcoin’s price volatility.
Bitcoin’s Market Status
Currently, Bitcoin is priced over $81,000, yet market sentiment has worsened. The Crypto Fear and Greed Index indicates ‘Extreme Fear,’ a sentiment not seen in over four years.
The BITCOIN Act now goes to the Senate Committee on Banking, Housing, and Urban Affairs for evaluation of its economic and security impacts. Congressman Begich’s House bill will begin its legislative process concurrently.
Will Congress Secure Bitcoin in U.S. Reserves?
If both bills pass their respective chambers, they could unite for a joint House-Senate vote and potentially reach President Trump’s desk for signing. Despite opposition from lawmakers wary of Bitcoin’s volatility, growing Republican support and Trump’s public backing enhance its likelihood of passage.
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