- Sen. Cynthia Lummis reintroduced the BITCOIN Act of 2025, seeking to establish a U.S. Strategic Bitcoin Reserve.
- The bill will now proceed to the Senate for debate, while a House version is being reviewed in parallel.
At the Bitcoin Policy Institute’s “Bitcoin for America” summit in Washington, D.C., Senator Cynthia Lummis officially reintroduced the BITCOIN Act of 2025. It is known to be a legislative push to integrate Bitcoin [BTC] into the U.S. financial reserves.
The bill follows President Donald Trump’s executive order, which already set up a reserve using confiscated Bitcoin from federal seizures.
It was initially introduced in 2024 but failed to pass, returns with modifications and stronger backing from key Republican senators.
Source: X
Lummis, a longtime advocate for Bitcoin, emphasized the legislation’s importance, stating,
“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century.”
She is supported by a coalition of co-sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
In the House, Congressman Nick Begich introduced a complementary bill, backed by six Republican co-sponsors.
She is joined by a coalition of co-sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
Source: X
Begich called the effort a “bold and forward-looking legislative initiative” to ensure the U.S. remains dominant in the global digital economy.
Trump’s executive order was just the beginning
Last week, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, allocating 200,000 BTC valued at over $16 billion at current market prices.
The order places these holdings under federal control, but without congressional legislation, future administrations could potentially reverse the policy.
The BITCOIN Act seeks to permanently institutionalize Bitcoin holdings within the U.S. Treasury, ensuring the government actively accumulates BTC rather than relying on asset seizures.
Michael Saylor, of Strategy (formerly MicroStrategy), supported Senator Lummis’ stance, emphasizing the need for U.S. leadership in Bitcoin adoption. He said,
“I’m here today to show you how the Strategic Bitcoin Reserve represents a strategy for United States digital supremacy in the 21st century.”
If passed, the bill would mandate the government to acquire BTC through remittances from the Federal Reserve and Treasury funds, without direct taxpayer funding.
One million Bitcoins? The U.S. has a plan for that!
The BITCOIN Act of 2025 aims to legally establish the Bitcoin reserve, ensuring it cannot be reversed by future policies.
The plan includes purchasing 200,000 BTC annually over five years, allowing the U.S. to accumulate one million Bitcoins by 2029. These assets must be held for a minimum of 20 years and will be managed by the Treasury.
Funding for these acquisitions will come solely from Federal Reserve remittances, gold certificates, and Treasury assets, without relying on taxpayer dollars.
Trump’s crypto policy advisor, David Sacks, reaffirmed that,
“This will not cost taxpayers a dime.”
Source: X
Financial analysts have weighed in on the potential impact of a U.S. Bitcoin reserve.
Can Bitcoin save America’s balance sheet?
A recent report from VanEck, a $115 billion asset manager, estimates that if the U.S. accumulates one million BTC and holds them until 2049, the reserve could be worth $42.4 trillion.
At that valuation, Bitcoin holdings could offset 35% of the projected national debt, significantly improving the U.S. fiscal position.
Even under a more conservative estimate, VanEck suggests Bitcoin could cover at least 18% of U.S. debt if growth trends continue. However, critics warn that Bitcoin’s price volatility poses risks.
If the asset were to experience prolonged downturns, its effectiveness as a reserve asset could be compromised.
Bitcoin holds at $81k—but fear dominates the market
While Bitcoin remains above $81,000, market sentiment has deteriorated significantly.
Source: CoinMarketCap
The Crypto Fear and Greed Index, which tracks investor sentiment, has fallen into the ‘Extreme Fear’ zone. Crypto Rand noted,
“Bitcoin and the whole crypto market [are] entering an extreme fear range. Levels not seen since more than 4 years ago.”
The BITCOIN Act will now proceed to the Senate Committee on Banking, Housing, and Urban Affairs, where lawmakers will review the bill’s economic and security implications.
Meanwhile, Congressman Begich’s House bill is set to begin its legislative process.
Will Congress cement Bitcoin’s place in U.S. reserves?
If both bills pass their respective chambers, a joint House-Senate vote could send the legislation to President Trump’s desk for signing.
While the bill faces opposition from some lawmakers concerned about Bitcoin’s volatility, the growing Republican backing and Trump’s public support increase its chances of success.
