Senator Lummis Reintroduces Bitcoin Act Bill to Establish U.S. Strategic Bitcoin Reserve

Highlights:

• Senator Lummis reintroduces the Bitcoin Act Bill to create a strategic reserve.
• The U.S. government aims to acquire 1 million BTC over five years.
• The bill ensures transparency with independent audits and decentralized storage.

Senator Cynthia Lummis has reintroduced the Bitcoin Act Bill in the U.S. Congress with a hint at the intention of a Strategic Bitcoin Reserve. The bill, titled “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act,” plans to establish decentralized Bitcoin vaults across the country. This comes shortly after the U.S. President, Donald Trump recently signed an executive order to launch a Strategic Bitcoin Reserve (SBR) using Bitcoins seized by the government.

Advertisement

The Bitcoin Act Bill further enters a plan to buy up to 1 million Bitcoins within five years. This acquisition would mean about 5% of the total amount of BTC in circulation. The bill will aim to preserve Bitcoin through decentralized storage, a program operated by the US Treasury. Lummis argues that such reserve will work as the U.S. gold reserves and therefore contribute to stability in the financial markets.

Key Features of the Bitcoin Act Bill

There are several important points of the Bitcoin Act Bill. It recommends building a suitable strategic Bitcoin reserve with up to 1 million BTC. This would be managed by the U.S. Treasury to allow transparency and security management. The bill also introduces the concept of proof of reserve audits to be used as an accountability measure.

Moreover, it also contains a Bitcoin Purchase Program that will be funded from the first $6 billion of the Fed remittances starting from 2025 to 2029. This would contribute to the acquisition of bitcoins for the purpose of storage.

The bill also permits the states to keep Bitcoin in segregated accounts. It also protects private Bitcoin holders, assuring that self-custody rights will not be violated. These features intend to ensure a balance in backing Bitcoin reserves by the U.S. and protect individual ownership.

Legislative Path and Implications for U.S. Financial Policy

The reintroduction of the Bitcoin Act Bill is a step towards implementing the use of Bitcoin in the national financial system. The bill aims to meet the increasing demand for managing digital assets in the United States. By securing a significant Bitcoin stake, the U.S. could bolster its financial balance sheet and prepare for a future where digital currencies play a larger role.

The executive order signed by President Trump in early March 2025 outlines the framework of the Bitcoin reserve by formalizing the management of seized Bitcoin. However, the bill proposed by Lummis tends to enshrine this vision into legislation. When enacted, the Bitcoin Act Bill would help the U.S. formalize its long-term vision of utilizing Bitcoin as a national asset.

Despite facing challenges when it was first introduced in July last year, Lummis intends to have the bill passed during this session. Lummis said that the Bitcoin Act Bill would help place the United States at the forefront of global financial innovation in the digital economy.

Advertisement