Sen. Lummis Reintroduces the BITCOIN Act of 2025: A Strategic Push for U.S. Bitcoin Reserves
At the Bitcoin Policy Institute’s “Bitcoin for America” summit in Washington, D.C., Senator Cynthia Lummis officially reintroduced the BITCOIN Act of 2025, a legislative proposal aimed at integrating Bitcoin (BTC) into the U.S. financial reserves.
The reintroduction follows President Donald Trump’s recent executive order, which established a Strategic Bitcoin Reserve funded by confiscated Bitcoin from federal seizures.
Originally introduced in 2024, the bill failed to pass but returns this year with key modifications and stronger support from several leading Republican senators.
A longtime Bitcoin proponent, Lummis underscored the urgency of the measure, stating:
“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century.”
Lummis is joined by a coalition of Republican co-sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
On the House side, Congressman Nick Begich has introduced a complementary version of the bill, supported by six Republican co-sponsors. Begich described the legislative effort as: “A bold and forward-looking legislative initiative” to ensure the U.S. remains dominant in the global digital economy.
Trump’s Executive Order: The Starting Point
Just last week, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve, allocating 200,000 BTC, currently valued at over $16 billion. These assets will be held under federal control. However, without congressional backing, future administrations could reverse this policy.
The BITCOIN Act aims to permanently enshrine Bitcoin holdings within the U.S. Treasury, mandating active accumulation of BTC rather than relying solely on asset seizures.
Michael Saylor, Chairman of Strategy (formerly MicroStrategy), threw his support behind Lummis’ proposal, stating:
“I’m here today to show you how the Strategic Bitcoin Reserve represents a strategy for United States digital supremacy in the 21st century.”
A Plan to Accumulate One Million Bitcoins
If passed, the bill would direct the government to acquire Bitcoin using Federal Reserve remittances and Treasury funds, without drawing on taxpayer dollars.
The BITCOIN Act of 2025 outlines an ambitious plan: purchasing 200,000 BTC annually over the next five years, with a target of accumulating one million Bitcoins by 2029. The assets would be held for at least 20 years, managed by the Treasury.
David Sacks, Trump’s crypto policy advisor, emphasized:
“This will not cost taxpayers a dime.”
According to a recent report from VanEck, a $115 billion asset management firm, if the U.S. holds onto its Bitcoin reserve until 2049, it could be worth $42.4 trillion. This potential valuation would offset 35% of America’s projected national debt.
Even under a more conservative scenario, VanEck suggests the reserve could cover at least 18% of the debt, though analysts warn that Bitcoin’s volatility remains a critical risk.
Despite Bitcoin maintaining a price above $81,000, investor sentiment has taken a hit. The Crypto Fear and Greed Index has plunged into the ‘Extreme Fear’ zone. “Bitcoin and the whole crypto market [are] entering an extreme fear range. Levels not seen since more than 4 years ago,” Crypto Rand commented.
What’s Next for the BITCOIN Act?
The Senate Committee on Banking, Housing, and Urban Affairs will now review the bill, assessing its economic and national security implications. Meanwhile, Congressman Begich’s House bill is set to begin its own legislative journey.
If both bills pass their respective chambers, a joint House-Senate vote could send the legislation to President Trump for his signature.
Despite opposition from lawmakers concerned about Bitcoin’s price swings, the growing Republican support and Trump’s endorsement increase the bill’s chances of becoming law.
