Senator Lummis Reintroduces BITCOIN Act Proposing Major Bitcoin Purchase for Strategic Reserve

Earlier today, Senator Cynthia Lummis says she reintroduced the BITCOIN Act during a conference hosted by the Bitcoin Policy Institute. The event, attended by notable figures like Michael Saylor and Vivek Ramaswamy, provided a platform for Lummis to outline her vision for a U.S. strategic Bitcoin reserve.

This move comes as the regulatory and market landscapes surrounding digital assets continue to shift, reflecting growing interest in integrating Bitcoin into national financial strategies. The reintroduction of the bill marks a renewed effort to push forward a proposal that first surfaced in July 2024 but stalled due to insufficient bipartisan backing and doubts about its practicality, effectively lapsing at the end of the 2023–2024 congressional session.

The BITCOIN Act aims to establish a framework for the U.S. government to engage directly with Bitcoin on a large scale. Under the legislation, the Treasury would oversee a strategic Bitcoin reserve, utilizing secure and decentralized storage facilities across the country. The plan includes provisions to address technical aspects like forks and airdrops, with a requirement to hold acquired Bitcoin for a minimum of 20 years. A central component of the bill is the Bitcoin Purchase Program, which would authorize the acquisition of up to 1 million BTC over five years. To ensure transparency, independent proof-of-reserve audits would be conducted regularly. The proposal also allows states to maintain segregated Bitcoin accounts and incorporates measures to offset costs, directing the first $6 billion of annual Federal Reserve remittances from 2025 to 2029 to fund the purchases.

Connection to Recent Executive Action

This legislative push follows closely on the heels of President Donald Trump’s executive order, signed last week, which established a Strategic Bitcoin Reserve focused on managing seized assets rather than acquiring new Bitcoin. The order formalizes policies for handling cryptocurrency already in government possession, signaling a broader acceptance of digital assets within federal frameworks.

Lummis’ reintroduced bill builds on this momentum, proposing a more ambitious approach by advocating for a significant government investment in Bitcoin over the coming years. The senator’s earlier attempt to pass the BITCOIN Act in 2024 faced challenges, as lawmakers questioned the feasibility of such a large-scale purchase and the long-term role of Bitcoin in national reserves. With the congressional session reset, Lummis now has an opportunity to refine her strategy and seek broader support.

The reintroduction of the BITCOIN Act reflects a growing intersection between cryptocurrency and public policy, as lawmakers grapple with how to position the United States in a rapidly changing financial landscape. By proposing a reserve that could amass 1 million BTC, Lummis is signaling confidence in Bitcoin’s enduring value and its potential as a strategic asset. The bill’s emphasis on decentralized storage and transparency aims to address concerns about security and accountability, while the extended holding period underscores a long-term perspective. As the legislation moves forward, its success will depend on navigating a divided Congress and addressing skepticism from those wary of tying national finances to a volatile asset.