Lummis’ Bitcoin Act: US Reserve Exceeds 1M Bitcoin
- Senator Cynthia Lummis has reintroduced the BITCOIN Act, a move that could see the U.S.
- the bill,initially introduced in July,proposes that the U.S.government purchase 200,000 BTC annually over five years, culminating in a total acquisition of 1 million Bitcoin. This acquisition would be...
- The reintroduced act, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, broadens the scope for the U.S.
BITCOIN Act Reintroduced: US Government Could Hold Over 1 Million Bitcoin
Table of Contents
- BITCOIN Act Reintroduced: US Government Could Hold Over 1 Million Bitcoin
- BITCOIN Act: Q&A on the Proposed US Strategic Bitcoin Reserve
- What is the BITCOIN Act?
- What are the main goals of the BITCOIN Act?
- How much bitcoin could the US Government perhaps hold under the BITCOIN Act?
- Where would the funding for Bitcoin acquisition come from?
- What are the additional provisions within the BITCOIN Act regarding forked assets?
- Can states participate in the strategic Bitcoin reserve?
- Who are the co-sponsors of the BITCOIN Act?
- How does the BITCOIN Act relate to President Trump’s Executive Order?
- What are the potential benefits of the BITCOIN Act?
- Key Aspects of the BITCOIN Act
Senator Cynthia Lummis has reintroduced the BITCOIN Act, a move that could see the U.S. government holding more than 1 million Bitcoin as part of a newly established strategic reserve. This initiative highlights the growing interest in cryptocurrency within governmental financial strategies.
the BITCOIN Act of 2025: A Strategic Bitcoin Reserve
the bill,initially introduced in July,proposes that the U.S.government purchase 200,000 BTC annually over five years, culminating in a total acquisition of 1 million Bitcoin. This acquisition would be funded through diversification of existing funds within the Federal Reserve system and the Treasury Department.
The reintroduced act, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, broadens the scope for the U.S. to acquire and hold over 1 million BTC. This can occur through lawful means beyond direct purchase, including civil or criminal forfeitures, gifts, or transfers from federal agencies.
States can also voluntarily store their Bitcoin holdings in the strategic Bitcoin reserve, held in a segregated account.
According to Senator Lummis, “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.” Lummis announced the revamped bill at a March 11 conference hosted by The Bitcoin Policy Institute.
New Co-Sponsors Join the BITCOIN act
The BITCOIN Act has garnered support from several new co-sponsors, including Republican Senators Jim justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
Senator Justice stated,”I’m proud to join Senator Lummis on this common-sense bill to create a strategic Bitcoin reserve and codify President Trump’s executive order.”
He further added, “This bill represents America’s continued leadership in financial innovation, bolsters both our economic security, and gives us an prospect to wrangle in our soaring national debt.”
Additional Provisions of the Act
The bill now includes a formal evaluation process for Bitcoin forked assets and airdropped assets within the reserve.
Initially, all forked assets were to be stored in the reserve, with no sale or disposal permitted for five years unless authorized by law.
The revised bill directs the Secretary, after the mandatory holding period, to evaluate and retain the most valuable asset based on market capitalization while retaining the “dominant asset.”
Bitcoin has undergone several hard forks, resulting in new cryptocurrencies such as Bitcoin Cash (BCH), which forked on August 1, 2017, and Bitcoin Gold (BTG), which forked on October 24, 2017.
Lummis’ reintroduced bill follows President Donald Trump’s recent signing of an executive order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”
these initiatives will initially utilize cryptocurrency forfeited in government criminal and civil cases. The reserve will not sell the stashed bitcoin and will seek “budget-neutral” methods to increase its holdings, while tokens from the stockpile may be sold.
BITCOIN Act: Q&A on the Proposed US Strategic Bitcoin Reserve
This article dives into the key questions surrounding the reintroduced BITCOIN Act,exploring its potential impact on the U.S. government’s cryptocurrency strategy and the broader digital economy.
What is the BITCOIN Act?
The BITCOIN Act, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, is a proposed bill designed to establish a U.S. strategic Bitcoin reserve. It was reintroduced by Senator Cynthia Lummis. The bill aims to position the U.S. as a leader in the digital economy.
What are the main goals of the BITCOIN Act?
Establish a National Bitcoin Reserve: The primary goal is to create a strategic reserve of Bitcoin held by the U.S. government.
Promote Financial Innovation: The act seeks to foster innovation in the financial sector by embracing digital assets.
Enhance Economic Security: By incorporating Bitcoin into its financial strategy, the U.S. aims to strengthen its economic security.
Address National Debt: senator Lummis believes the act can help address the national debt.
How much bitcoin could the US Government perhaps hold under the BITCOIN Act?
The act proposes that the U.S. government purchase 200,000 BTC annually over five years. This would result in a total acquisition of 1 million Bitcoin. However, the act also broadens the scope for acquiring Bitcoin. The U.S. can acquire and hold over 1 million BTC through lawful means beyond direct purchase.This includes civil or criminal forfeitures, gifts, or transfers from federal agencies.
Where would the funding for Bitcoin acquisition come from?
The acquisition of Bitcoin would be funded through diversification of existing funds within the Federal Reserve System and the Treasury Department.The act operates under the principle of budget neutrality. It seeks methods to increase Bitcoin holdings without impacting the budget. Forfeited cryptocurrency from criminal and civil cases would be utilized.
What are the additional provisions within the BITCOIN Act regarding forked assets?
The bill includes a formal evaluation process for Bitcoin forked assets and airdropped assets within the reserve. Initially, all forked assets were to be stored in the reserve, with no sale or disposal permitted for five years unless authorized by law.
The revised bill directs the Secretary, after the mandatory holding period, to evaluate and retain the most valuable asset based on market capitalization while retaining the “dominant asset.”
Can states participate in the strategic Bitcoin reserve?
Yes, states can voluntarily store their Bitcoin holdings in the strategic Bitcoin reserve. These holdings would be held in a segregated account.
Who are the co-sponsors of the BITCOIN Act?
The BITCOIN Act has gained support from several co-sponsors, including Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
How does the BITCOIN Act relate to President Trump’s Executive Order?
Lummis’ reintroduced bill follows President Donald Trump’s recent signing of an executive order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” The BITCOIN Act seeks to codify President Trump’s executive order into law.
What are the potential benefits of the BITCOIN Act?
Economic Competitiveness: The act aims to maintain America’s competitive edge in the global economy.
financial Innovation: It supports innovation in the financial sector by embracing digital assets like Bitcoin.
National Security: Bolsters economic security.
Debt reduction: Senator Justice believes the bill gives “an prospect to wrangle in our soaring national debt.”
Key Aspects of the BITCOIN Act
| Aspect | Description |
| ————————– | ————————————————————————————————————————————————————————————————————————————— |
| Strategic Bitcoin Reserve | Creation of a national reserve of Bitcoin. |
| Acquisition Method | Primarily diversification of existing funds, civil/criminal forfeitures, gifts, and transfers.|
| Acquisition Goal | Potentially over 1 million Bitcoin. |
| State Participation | States can voluntarily store Bitcoin in a segregated account within the reserve. |
| Forked Assets | Formal evaluation process to determine retention based on market capitalization. The “dominant asset” will be retained. |
| Purpose | Bolstering economic security, promoting financial innovation, maintaining global competitive edge, and addressing national debt. |
| Executive Order Alignment | Codifies President Trump’s executive order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” |