Senator Cynthia Lummis Proposes Legislation for US Government to Acquire Bitcoin
Senator Cynthia Lummis reintroduced legislation that would authorize the US government to acquire up to 1 million Bitcoin (BTC), formalizing President Donald Trump’s recent executive order establishing a federal Bitcoin reserve.
The BITCOIN Act
The BITCOIN Act aims to integrate digital assets into US financial strategy, requiring the Treasury Department to manage the acquisition and secure storage of Bitcoin. Lummis positioned the bill as a forward-looking measure for economic stability and innovation.
“By codifying this effort into law, we can ensure that our nation leverages digital assets to strengthen our financial future while maintaining its global leadership.”
Key Points of the Bill
- Five Republican Senators cosponsor the bill
- Companion bill introduced in the House by Congressman Nick Begich
- Federal government to purchase up to one million BTC over five years
- Partially funded by the Federal Reserve’s net earnings and adjustments to Treasury certificates
- Establishment of decentralized network of secure Bitcoin storage facilities
- Bitcoin to be held for at least 20 years with selling restrictions
Lummis’ bill differs from the White House’s stance on Bitcoin reserves. While Trump’s executive order established a strategic reserve, senior officials have indicated a preference for indefinite holding rather than scheduled acquisitions.
The introduction of this legislation follows increased political backing for crypto initiatives. Notably, pro-crypto advocacy groups played a key role in the electoral defeat of Senator Sherrod Brown, an outspoken critic of the industry. These developments could shape the bill’s legislative trajectory, though its passage remains uncertain.
Impact of the BITCOIN Act
If passed, the BITCOIN Act would mark a significant shift in US monetary policy, positioning Bitcoin as a formal reserve asset and reinforcing the country’s role in the digital asset economy.
