Senator Lummis Re-introduces Bitcoin Bill
Senator Cynthia Lummis recently took a significant step in pushing her vision for cryptocurrency legislation forward. On March 11, she announced the reintroduction of the Bitcoin Act, formally known as the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act.” This ambitious piece of legislation aims to solidify the United States’ commitment to integrating Bitcoin into its financial system, a vision originally proposed in July 2024 but necessitating reintroduction due to the arrival of a new legislative session.
The Bitcoin Act seeks to create a comprehensive framework for managing Bitcoin reserves, aligning with former President Trump’s strategic vision for the nation’s economic future. The bill garners support from a range of Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno, illustrating a concerted effort within the party to position Bitcoin as a cornerstone of U.S. financial policy.
### Establishing a Nationwide Strategic Bitcoin Reserve
At the heart of the proposed legislation is the establishment of secure Bitcoin vaults managed by the U.S. Treasury Department. The act proposes a Bitcoin Purchase Program authorizing the acquisition of 1 million Bitcoin—approximately 5% of the total supply—phased in at 200,000 BTC each year over five years, with a required holding period of at least 20 years.
The funding for this ambitious initiative is poised to come from diversifying existing federal funds and affirms the rights of private holders to maintain self-custody of their assets. Senator Lummis emphasized the strategic importance of Bitcoin, stating, “Bitcoin is not simply a technological opportunity but a national imperative for America’s continued financial leadership in the 21st century.”
As the bill moves through legislative channels, various senators have expressed their opinions. Jim Justice described the proposal as “common sense,” while Tommy Tuberville suggested Bitcoin could be instrumental in addressing the national debt. In a similar vein, Bernie Moreno pointed out that the initiative is essential given the current climate of soaring national debt, which is nearing $36 trillion.
### Financial Provisions in the Legislation
The bill also includes measures to decrease the Federal Reserve’s discretionary surplus funds from $6.8 billion to $2.4 billion, with plans to reallocate an additional $6 billion of Federal Reserve remittances to the Treasury over the next four years. This financial reshaping is aimed at supporting the strategic reserve while reinforcing the U.S. economic framework.
Cynthia Lummis underscored the potential for Bitcoin and digital assets, tweeting, “Say it with me: this is the year for bitcoin and digital assets.”
### State Responses to Bitcoin Reserve Legislation
The movement toward strategic Bitcoin reserves is not limited to federal legislation. According to the Bitcoin Reserve Monitor, 19 states currently have proposals for strategic Bitcoin reserve legislation pending, with two nearing final approval. However, five states have already opted against allowing their treasuries to invest in Bitcoin.
Adding to the momentum, President Trump signed an executive order on March 6 aimed at the establishment of a strategic Bitcoin reserve, utilizing Bitcoin already seized by government authorities.
In the midst of this legislative activity, Bitcoin’s market performance shows signs of resilience, recently recovering to approximately $83,000 after a slight uptick of 4.6%. The cryptocurrency has faced a correction of nearly 30% from its all-time highs, but the renewed interest spurred by legislative developments signals a growing influence of Bitcoin and digital assets on U.S. economic policy.
As the Bitcoin Act journeys through Congress, its potential to reshape the financial landscape remains a topic of keen interest and debate. The bill’s implications for the U.S. economy and its positioning in the global financial system could be profound, setting a precedent for how cryptocurrencies are regulated and utilized in the future.
