Senator Lummis’ BITCOIN Act: A New Era for US Bitcoin Reserves

US Senator Cynthia Lummis has reintroduced the BITCOIN Act, a groundbreaking piece of legislation that could enable the US government to hold more than 1 million Bitcoin (BTC) as part of a newly established reserve. This act, officially known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, opens up significant opportunities for the US to acquire and maintain a substantial Bitcoin reserve through various lawful means.

Understanding the BITCOIN Act

The BITCOIN Act allows the government to acquire Bitcoin not just through direct purchases but also through civil or criminal forfeitures, gifts made to the US, or transfers from federal agencies. Additionally, states can voluntarily contribute their Bitcoin holdings to this strategic reserve, which will be stored in a segregated account. This innovative approach is designed to enhance the US’s financial capabilities while promoting digital innovation.

Senator Lummis’ Vision

“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,” stated Lummis during a conference hosted by The Bitcoin Policy Institute on March 11. Her remarks highlight the dual objectives of the BITCOIN Act: addressing the national debt and fostering a competitive economic environment.

Support from Fellow Senators

The BITCOIN Act has garnered support from several Republican Senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Senator Justice expressed his pride in joining Lummis on this initiative, stating, “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.”

Key Changes in the New Bill

Initially, the BITCOIN Act mandated that all forked assets be stored in the reserve and prohibited their sale or disposal for five years unless authorized by law. However, the revised bill now directs the Secretary to evaluate and retain the most valuable assets based on market capitalization after the mandatory holding period, while also retaining the “dominant asset.” This shift reflects a more strategic approach to managing the reserve.

Funding the Reserve

The reserve will primarily utilize cryptocurrency forfeited in government criminal and civil cases. Importantly, the reserve will not sell the stashed Bitcoin but will seek “budget-neutral” methods to increase its size. While the tokens from the stockpile could be sold, the focus remains on building a robust reserve that can support the US economy.

Implications for the Future

The BITCOIN Act represents a significant step towards integrating cryptocurrency into the fabric of US financial policy. By establishing a strategic Bitcoin reserve, the US government is positioning itself as a leader in financial innovation, which could have far-reaching implications for the economy and the global cryptocurrency market.

As the landscape of digital currencies continues to evolve, legislation like the BITCOIN Act will play a crucial role in shaping the future of finance. With the potential to hold over 1 million Bitcoin, the US government is taking a proactive approach to harness the benefits of digital assets while addressing pressing economic challenges.

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