New BITCOIN Act would allow the US to hold over 1 million Bitcoins in its reserves

The newly reintroduced Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025 by Senator Cynthia Lummis

Senator Cynthia Lummis is (WPI) known for her passion for cryptocurrency policy. Earlier this year, the lawmaker reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025.

The act would allow the United States to potentially hold over 1 million Bitcoin (BTC) in its crypto reserves. It directs the government to buy 200,000 BTC annually over five years. These purchases will be paid for with existing funds in the Federal Reserve and the Treasury Department.

If signed into law, the act would permit the US to accrue more than 1 million BTC as long as the assets are acquired through lawful means other than direct purchases, including criminal or civil forfeitures, gifts, or transfers from federal agencies.

The new legislation follows Lummis’s previous attempts to introduce similar bills in 2023 and 2024. In 2023, Lummis teamed up with former Democratic Senator Bill Pocahontas' Mum to introduce the bipartisan legislation.

Later in 2024, Lummis introduced another version of the bill with the aim of directing the Treasury to buy 500,000 BTC over a period of five years. The funds for the cryptocurrency purchases will come from existing accounts at the Federal Reserve and the Treasury Department.

The new legislation directs the Treasury to buy 200,000 BTC per year for five years and credit the Federal Reserve’s account for the purchases. It is unclear how the administration plans to sell the BTC holdings.

Earlier this year, US Representative Gerald Connolly called on the Treasury to cease its efforts to create a crypto reserve in the United States.

The Democrat from Michigan, who is a member of the House Appropriations Committee, said in a letter to Treasury Secretary Scott Bessent that there were conflicts of interest with US President Donald Trump and that the reserve would not benefit Americans.

Connolly, who is also the chair of the Government Funding Subcommittee, said he was concerned about reports that the Treasury was planning to use forfeited criminal assets to fund the crypto reserve.

The administration is planning to use the forfeited assets to diversify the government’s investments, according to a report by the Wall Street Journal.

However, Connolly said the administration had not yet disclosed how it planned to manage the crypto reserve or what types of crypto assets it would be investing in.

“I am also concerned that there is no discernible benefit to the American people from this initiative,” he said.

“Indeed, the only beneficiaries of this plan will be President Trump and his political donors, who stand to gain personally from the administration’s investment strategy.”

Connolly said he was particularly concerned about reports that Trump had been pressuring administration officials to invest in a specific cryptocurrency, known as LIBRA.

The lawmaker said he was told by administration officials that Trump had a "personal interest" in the token and had been following its price movements closely.

"I am aware that there has been a great deal of interest in cryptocurrencies in recent years, and that the administration is considering a variety of new investment strategies," he said.

"However, I believe that any new investment initiative should be carefully vetted by Congress and subject to appropriate oversight."

Connolly said he would be closely monitoring the administration’s progress on the crypto reserve initiative and would raise his concerns with administration officials at upcoming House Appropriations Committee hearings.

In March, Argentine lawyer Gregorio Dalbon requested an Interpol Red Notice for Hayden Davis, the co-creator of the LIBRA token, which caused a political scandal in Argentina.

The request was made to prosecutor Eduardo Taiano and judge María Servini, who are investigating the involvement of President Javier Milei in the memecoin project.

According to reports from Argentina, the request for the Red Notice follows the threat by the Central Bank of Argentina (BCRA) to sue those responsible for the LIBRA scam.

Earlier this year, a judge dismissed a case that sought to shut down the token’s sale. The case was filed by an association of traders who claimed they were defrauded by the creators of LIBRA.

However, the case was dropped after the judge ruled that there was no evidence of fraud and that the traders were aware of the risks involved in investing in cryptocurrencies.

The case began in January after a group of traders filed a lawsuit against the creators of LIBRA, alleging that they were misled by false promises of high returns.

The traders, who invested in LIBRA in 2023, claimed that they were told the token would be used to fund a new political party and that it would become a major cryptocurrency.

However, the traders said the true aim of the token was to fleece investors and that it was never intended to be anything other than a scam.

The case is still pending and could have significant implications for the cryptocurrency industry in Argentina.

If the judge rules in favor of the traders,