Senator Cynthia Lummis (R-WY) has introduced the Bitcoin Investment and Treasury Oversight National (BITCOIN) Act. This legislative proposal would authorize the U.S. government to acquire 1 million Bitcoin and officially codify President Donald Trump’s strategic Bitcoin reserve initiative. The bill reflects growing political and institutional interest in Bitcoin as a monetary and financial asset for national reserves.
The BITCOIN Act has already secured five Republican co-sponsors in the Senate, including Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH). Notably, Moreno’s Senate campaign last year received substantial support from pro-crypto super PACs, highlighting the increasing political influence of the digital asset industry.
In the House of Representatives, Congressman Nick Begich (R-AK) is preparing to introduce a companion bill mirroring the BITCOIN Act, signaling broader congressional support for integrating Bitcoin into the U.S. financial strategy. The legislative push marks a historic moment in Bitcoin’s regulatory journey, as the United States considers adopting the cryptocurrency as a strategic asset within its national reserves.
“The acquisition and long-term storage of substantial quantities of Bitcoin by the United States can strengthen the financial condition of the United States, providing a hedge against economic uncertainty and monetary instability,” the Act states
Key Provisions of the BITCOIN Act
The BITCOIN Act outlines a structured acquisition plan for the U.S. government:
- Annual Purchases: The government would acquire 200,000 BTC annually over five years, totaling 1 million BTC, which represents approximately 5% of Bitcoin’s total supply.
- Funding Mechanism: The acquisitions would be financed by reallocating existing resources within the Federal Reserve and the Treasury Department, minimizing the impact on the federal budget.
- Secure Storage: The Department of the Treasury would establish a decentralized network of secure Bitcoin vaults, ensuring the highest levels of physical and cybersecurity for the nation’s Bitcoin holdings.
Funding for the program would come from the Treasury Department reissuing gold-backed certificates at updated market prices, with the Federal Reserve paying the difference to finance Bitcoin acquisitions. This approach avoids direct government spending while leveraging existing gold reserves to build the nation’s Bitcoin holdings.
Under the bill’s provisions, the Treasury Secretary will be responsible for both acquiring and managing Bitcoin within the reserve. All Bitcoin purchased through the program must be held for at least 20 years, ensuring long-term stability and preventing short-term market speculation. Additionally, any future Treasury Secretary will be restricted from selling more than 10% of the reserve within any two-year period, preventing drastic liquidations that could impact Bitcoin’s price and market dynamics.
By structuring the reserve around decentralized storage and controlled asset management, the legislation aims to integrate Bitcoin into the U.S. financial system as a long-term strategic asset while ensuring measured and responsible oversight of the nation’s digital wealth.
Implications for the States
By reintroducing this bill, Senator Lummis re-emphasized the urgency of codifying President Trump’s Bitcoin reserve initiative into law. Speaking at a recent conference, Lummis stated,
“By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation.”
The strategic Bitcoin reserve is positioned to bolster U.S. financial resilience and innovation, ensuring the country remains competitive as digital assets reshape the global economy.
The bipartisan support behind the BITCOIN Act further reinforces its credibility and legislative momentum, increasing its chances of moving through Congress and becoming a permanent fixture in U.S. financial policy.
Quick Facts:
- Senator Cynthia Lummis has reintroduced legislation for the U.S. government to acquire 1 million BTC over five years.
- The acquisition would be financed by reallocating existing Federal Reserve and the Treasury Department resources.
- The Treasury Department would establish a decentralized network of secure Bitcoin vaults for storage.
- The bill has garnered bipartisan support in both the Senate and the House of Representatives.
