Senator Lummis’ new BITCOIN Act allows US reserve to exceed 1M Bitcoin
U.S. Senator Cynthia Lummis has reintroduced the BITCOIN Act, a significant legislative move aimed at establishing a strategic reserve for Bitcoin within the U.S. government. This proposal, which seeks to enable the government to acquire and manage over 1 million Bitcoin, was first introduced back in July and has gathered renewed momentum following its latest iteration, the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025.
Central to this act is the directive for the U.S. government to purchase 200,000 Bitcoin annually over a five-year span. The total potential acquisition would amount to 1 million Bitcoin, with funding sourced through the reallocation of existing Federal Reserve and Treasury Department resources. However, the act also outlines alternative avenues for acquiring these digital assets, permitting methods beyond direct purchases, such as civil and criminal asset forfeitures, charitable donations, or transfers from federal bodies.
Lummis, who presented the revamped bill at a March 11 conference hosted by The Bitcoin Policy Institute, emphasized the act’s dual purpose: “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.”
A notable aspect of the reintroduced bill is the establishment of protocols for evaluating Bitcoin forked assets and airdrops within the reserve. Under its previous iteration, all forked assets had to be retained for a minimum of five years without the opportunity for sale unless legally authorized. The revised proposal empowers the Secretary to assess the retained assets after the mandatory holding period, retaining only those deemed most valuable based on market capitalization, effectively ‘sorting’ through the cryptocurrency landscape.
The BITCOIN Act is bolstered by the support of several new co-sponsors, including Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Justice has voiced strong backing for Lummis’ initiative, framing it as a practical approach to fortifying America’s economic future while highlighting the importance of maintaining leadership in financial innovation.
In recent developments, this legislative push follows President Donald Trump’s executive order aimed at establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” This stockpile is set to be built primarily from cryptocurrency forfeited during government actions against civil and criminal cases. It’s worth noting that while the reserve is prohibited from liquidating its Bitcoin holdings, the stockpile could potentially be managed flexibly on a budget-neutral basis.
As the discussions surrounding cryptocurrency’s place in governmental financial strategies evolve, Lummis’ reintroduced BITCOIN Act stands at the forefront, presenting a novel framework that intertwines innovation with fiscal responsibility.
For further detailed information on the bill, Senator Lummis’ official statements, and its broader implications in the cryptocurrency ecosystem, please refer to the related links throughout this report.
