Senator Lummis reintroduces Bitcoin Act to establish strategic reserve

U.S. Senator Cynthia Lummis has reintroduced the BITCOIN Act, aiming to create a strategic Bitcoin (CRYPTO:BTC) reserve that could potentially exceed 1 million BTC.

The bill, formally titled the Boosting Innovation, Technology, and Competitiveness through Optimised Investment Nationwide (BITCOIN) Act of 2025, outlines a plan for the federal government to acquire 200,000 Bitcoin annually over five years, with additional holdings allowed through lawful means such as forfeitures or gifts.

The initiative seeks to strengthen the U.S. dollar by diversifying federal reserves with Bitcoin, a move Lummis described as a "Louisiana Purchase moment" for financial innovation.

“This legislation ensures our nation harnesses the full potential of digital innovation to address national debt while maintaining our competitive edge in the global economy,”  Lummis stated during a March 11 announcement at the Bitcoin Policy Institute conference.

The proposed reserve would be managed by the U.S. Treasury using decentralised secure vaults and would mirror the structure of existing gold reserves.

The government would hold Bitcoin for at least 20 years, using it only to pay down national debt during that period.

Funding for the acquisition would come from reallocating existing Federal Reserve and Treasury resources.

The bill also introduces provisions for managing forked and airdropped assets within the reserve.

After an initial holding period, the Secretary of the Treasury would evaluate these assets based on market capitalisation and retain only those deemed most valuable.

Lummis has garnered support from several Republican senators, including Jim Justice and Tommy Tuberville, who view the bill as a step toward bolstering U.S. economic security and leadership in financial innovation.

Critics, however, have raised concerns about potential risks associated with relying on a volatile asset like Bitcoin.

This reintroduction follows President Donald Trump’s recent executive order establishing a “Strategic Bitcoin Reserve” and signals growing bipartisan interest in integrating cryptocurrency into national fiscal strategies.

At the time of reporting, the Bitcoin (BTC) price was $81,835.18.