Senator Cynthia Lummis of Wyoming has reintroduced a bill that would create a Strategic Bitcoin Reserve as part of the U.S. financial system.
The proposal builds on President Donald Trump’s recent executive order that established a federal Bitcoin reserve.
The BITCOIN Act, which stands for Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, would authorize the U.S. government to acquire up to 1 million BTC over five years.
Lummis argues that this move would strengthen the country’s financial position and ensure that the U.S. remains competitive in the growing digital asset industry.
In a statement, Lummis said that transforming Trump’s executive order into law would allow the country to fully harness digital innovation to address national debt while maintaining its competitive edge in the global economy.
The BITCOIN Act is back. pic.twitter.com/WNeU6SWPj3
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
The bill has gained support from Republican Senators Jim Justice of West Virginia, Tommy Tuberville of Alabama, Roger Marshall of Kansas, Marsha Blackburn of Tennessee, and Bernie Moreno of Ohio.
In the House of Representatives, Republican Representative Nick Begich of Alaska has introduced a companion bill.
How the BITCOIN Act Would Work
Lummis’ bill outlines a structured approach for acquiring, storing, and managing Bitcoin within the U.S. government’s financial system.
Buying Bitcoin Over Five Years
The Treasury Department would oversee the purchase of 1 million BTC, which represents approximately five percent of Bitcoin’s total supply. The acquisition plan mirrors the way the U.S. government manages its gold reserves.
Secure Storage Across the Country
The bill requires the creation of a decentralized network of secure Bitcoin storage facilities spread across the United States. These storage locations would use cold storage solutions to protect against cybersecurity threats.
Funding the Reserve
The proposal aims to fund the Bitcoin purchases without additional government spending. The two primary funding sources would be:
- Earnings from Federal Reserve investments
- Treasury-issued gold certificates that reflect current market prices
By updating the valuation of gold-backed Treasury certificates, the Federal Reserve would pay the difference to finance the Bitcoin purchases.
Rules on Selling Bitcoin
Lummis’ bill includes guidelines for future sales of Bitcoin in the reserve. The Bitcoin must be held for at least 20 years before it can be sold. Additionally, the Treasury Secretary would be prohibited from selling more than ten percent of the reserve within any two-year period.
How Lummis’ Bill Differs from Trump’s Executive Order
President Trump’s executive order established the Strategic Bitcoin Reserve, but Lummis’ legislation would make the initiative permanent and expand its scope.
| Feature | Trump’s Executive Order | Lummis’ BITCOIN Act |
|---|---|---|
| Legal Framework | Executive order (can be reversed) | Full legislation (long-term stability) |
| Bitcoin Acquisition | No specific target | 1 million BTC over five years |
| Storage | Treasury-controlled reserve | Secure vaults across the U.S. |
| Sale Restrictions | No sales allowed | 10 percent sell limit per two-year period |
| Funding Source | Bitcoin from forfeiture cases | Federal Reserve earnings and Treasury gold certificates |
Unlike Trump’s order, Lummis’ bill introduces a controlled selling mechanism, allowing the government to use Bitcoin as a financial tool over time.
