Senator Lummis Reintroduces”BITCOIN Act”–Aiming for 1,000,000 BTC Acquisition
Overview
On March 11, 2025, U.S. Senator Cynthia Lummis (R-WY) reintroduced the “BITCOIN Act”, a bill aimed at establishing a strategic Bitcoin reserve for the United States. The proposal outlines a five-year plan to acquire 1,000,000 BTC, positioning Bitcoin as a key asset in the country’s financial strategy.
This bill was originally introduced in July 2024, but this reintroduction aligns with President Trump’s executive order establishing the Strategic Bitcoin Reserve and U.S. Digital Asset Reserve. Lummis emphasized that formalizing this policy into law would maximize the potential of digital innovation while addressing national debt and maintaining economic competitiveness.
Key Provisions of the Bill
The “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act” (BITCOIN Act) includes the following major points:
- Establishment of a Strategic Bitcoin Reserve: The U.S. Treasury would manage a decentralized and secure Bitcoin vault network to strengthen the country’s economic foundation.
- Gradual Bitcoin Acquisition: The plan calls for purchasing 200,000 BTC per year over five years, ultimately reaching 1,000,000 BTC—approximately 5% of Bitcoin’s total supply, comparable in scale to U.S. gold reserves.
- Funding Sources: The bill proposes diversifying existing Federal Reserve and Treasury assets to finance Bitcoin acquisitions.
- Additional Acquisition Methods: The government may also acquire Bitcoin through seized assets from civil and criminal cases, donations, and transfers from federal agencies.
- State Participation: U.S. states can voluntarily deposit their Bitcoin holdings into the Strategic Bitcoin Reserve, with these assets managed separately.
Bipartisan Support and Co-Sponsors
The bill is co-sponsored by Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Additionally, Rep. Nick Begich (R-AK) has introduced a similar bill in the House of Representatives.
Meet your BITCOIN Act cosponsors. @MarshaBlackburn @berniemoreno @RogerMarshallMD @JimJustice_WV @SenTuberville
Welcome a₿oard! pic.twitter.com/G83oTssYlQ
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
Senator Tommy Tuberville commented:
“Creating a strategic Bitcoin reserve is a crucial step for the U.S. to remain the world’s leading economic power. There’s no reason not to use Bitcoin to help reduce our national debt.”
Market Impact
If enacted, this bill would position the U.S. government as one of the largest holders of Bitcoin, likely driving significant upward pressure on BTC prices due to sustained demand.
Additionally, official government adoption of Bitcoin as a strategic asset could influence other governments and institutional investors to follow suit, further integrating Bitcoin into the global financial system.
The bill could also boost trust and legitimacy for Bitcoin, encouraging retail and institutional investors to enter the market.
Future Outlook
The passage of the BITCOIN Act would require approval from both the Senate and House, during which amendments and adjustments to the bill may occur. External factors, such as Bitcoin’s price fluctuations, global market conditions, and geopolitical shifts, could also impact the bill’s progress.
If approved, this legislation would mark a turning point in how governments view and utilize Bitcoin, transitioning it from an alternative investment into a recognized strategic asset.
Conclusion
- Senator Cynthia Lummis has reintroduced the “BITCOIN Act” to establish a U.S. Strategic Bitcoin Reserve.
- The bill proposes acquiring 1,000,000 BTC over five years, equivalent to 5% of Bitcoin’s total supply.
- The initiative aligns with President Trump’s digital asset policies and seeks to reduce national debt while boosting economic competitiveness.
- Institutional and governmental Bitcoin adoption could accelerate, potentially impacting BTC prices and broader market sentiment.
With this bill, the U.S. government could become one of the largest Bitcoin holders in the world, and the crypto industry is closely watching how lawmakers will respond to this ambitious proposal.
