Senator Cynthia Lummis has reintroduced her plan to reserve strategic Bitcoin assets for the U.S., a plan supported by President Donald Trump.
Reintroduction of the BITCOIN Act
The bill, called the BITCOIN Act, was first presented in July last year but didn’t pass. Now, Lummis is trying again with a few changes. In a post on X, she said the bill will help strengthen America’s financial position by officially making Bitcoin part of the country’s reserves.
U.S. Government Bitcoin Purchase Plan
The bill proposes that the government purchase up to 1 million Bitcoins in five years, making a rough 5% of all Bitcoin circulation. These holdings will be under the control of the US Treasury and will be stored in protected and decentralized vaults located around the country. The purpose is to fund it by reallocating existing funds from the Federal Reserve and Treasury accounts to avoid taxpayer burden. It also includes strict audits to ensure transparency and prevent fund misuse.
Political Support and Expert Opinions
Many Republican senators support the bill, such as Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Meanwhile, Republican candidate for the House of Representatives Nick Begich also put forth a similar bill, boosting support for the idea. Senator Tuberville is confident this will help sustain the economy: "Creating a Strategic Bitcoin Reserve is an important step in making sure the United States remains the strongest economy in the world," Tuberville said in a recent statement. "There’s no reason why we shouldn’t use Bitcoin to pay down our national debt."
If Lummis's bill is approved, it could set the stage for more government involvement in cryptocurrency, despite Bitcoin price fluctuations.
