Senator Lummis Reintroduces BITCOIN Act to Establish U.S. Strategic Bitcoin Reserve

Jimmy Aki
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On March 11, 2025, Senator Cynthia Lummis reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, which proposes the establishment of a U.S. Strategic Bitcoin Reserve, at the 119th Congress.

Key Provisions of the BITCOIN Act

This legislation proposes the creation of a U.S. Strategic Bitcoin Reserve, enabling the federal government to hold over 1 million Bitcoin (BTC).

The BITCOIN Act outlines a plan for the U.S. government to acquire 200,000 BTC annually over five years, totaling 1 million BTC.

Funding for these acquisitions would come from diversifying existing resources within the Federal Reserve System and the Treasury Department.

Additionally, the act permits the government to obtain Bitcoin through lawful means other than direct purchase, such as civil or criminal forfeitures, gifts to the U.S., or transfers from federal agencies.

Senator Cynthia Lummis emphasized the importance of this initiative, stating that it positions the United States to harness digital innovation to address national debt while maintaining a competitive edge in the global economy.

The reintroduced BITCOIN Act has attracted support from several Republican Senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

Senator Justice expressed his support, highlighting the bill’s potential to bolster economic security and address the national debt.

Alignment with Executive Actions

The reintroduction of the BITCOIN Act aligns with President Donald Trump’s recent executive actions.

On March 6, 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

The executive order also mandates that federal agencies fully account for their digital asset holdings to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets.

Meanwhile, Texas is also moving toward creating its own Bitcoin reserve, with the president of the state senate, Lieutenant Governor Dan Patrick, making it a key priority for the 2025 legislative agenda.

Texas state lawmakers, including Senator Charles Schwertner and Representative Giovanni Capriglione, have introduced bills to establish a state-held Bitcoin reserve and allow Bitcoin payments for state fees and taxes.

Texas is not the only state considering Bitcoin reserves. At least five other states, including Arizona and Utah, have suggested similar plans.

The establishment of a Strategic Bitcoin Reserve signifies a pivotal shift in the U.S. financial strategy, positioning Bitcoin as a critical component of the nation’s reserve assets.

This initiative reflects a broader acceptance of digital assets within the federal framework and underscores the government’s commitment to financial innovation.

By integrating Bitcoin into its reserve assets, the U.S. aims to strengthen its financial position and leverage the benefits of digital currencies. This move could enhance the country’s economic resilience and adaptability in an increasingly digital global economy.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.