Senator Cynthia Lummis has reintroduced a groundbreaking piece of legislation that could revolutionize the US government’s approach to digital assets. The BITCOIN Act, which aims to authorize the acquisition of up to 1 million Bitcoin (BTC), formalizes President Donald Trump’s recent executive order establishing a federal Bitcoin reserve.
This legislation, if passed, would require the Treasury Department to oversee the acquisition and secure storage of Bitcoin, integrating digital assets into US financial strategy. Senator Lummis sees this bill as a forward-looking measure for economic stability and innovation, stating, “By codifying this effort into law, we can ensure that our nation leverages digital assets to strengthen our financial future while maintaining its global leadership.”
The BITCOIN Act has garnered support from five Republican Senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Additionally, Congressman Nick Begich has introduced a companion bill in the House.
If enacted, the bill would mandate the federal government to purchase up to one million BTC over a five-year period, with funding coming from the Federal Reserve’s net earnings and adjustments to Treasury certificates based on the Fed’s gold holdings. The proposal also calls for the establishment of a decentralized network of secure Bitcoin storage facilities across the US, with all acquired Bitcoin required to be held for at least 20 years.
One key difference between Lummis’ bill and the White House’s stance on Bitcoin reserves is the approach to acquisition. While Trump’s executive order favored indefinite holding, Lummis’ proposal outlines a structured purchasing framework. The administration has stressed the importance of budget-neutral approaches, while the BITCOIN Act presents a broader financial strategy.
The introduction of this legislation comes amidst growing political support for crypto initiatives, with advocacy groups playing a significant role in shaping the industry’s regulatory landscape. However, the bill’s passage remains uncertain, and its legislative trajectory will depend on ongoing developments in Congress.
If passed, the BITCOIN Act would mark a significant shift in US monetary policy, positioning Bitcoin as a formal reserve asset and solidifying the country’s position in the digital asset economy. This bold step could set a precedent for other nations to embrace digital assets as part of their financial strategies.
Overall, Senator Lummis’ initiative represents a bold and forward-thinking approach to integrating digital assets into the US financial system, signaling a new era of innovation and economic stability.