Efforts to create a U.S. Strategic Bitcoin Reserve have intensified

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Senator Cynthia Lummis has reignited efforts to create a U.S. Strategic Bitcoin Reserve by proposing legislation to accumulate 1 million BTC over five years.

The bill, a revival of a 2024 proposal, directs the government to purchase Bitcoin using funds from the Federal Reserve system. These funds would be specifically allocated from reserve banks for these acquisitions.

Senator Lummis’s proposal calls for the U.S. Treasury to accumulate Bitcoin, treating it as a long-term asset rather than a speculative investment. The legislation states the government will use a portion of the Federal Reserve’s transfers, set at $6 billion annually from 2025 to 2029, to build up the Bitcoin reserve.

The plan also includes the Fed’s gold certificates. Lummis said that Bitcoin is not just a technological advance but an important step for the U.S. to maintain financial leadership.

“This legislation is a critical step in safeguarding our nation’s economic future,” said Senator Lummis.

“As the world changes around us, so must our thinking. We cannot keep doing the same things and expect different results. The time has come for bold solutions, and the BITCOIN Act is precisely that.”

The proposal has gained support from key Republican figures, including Senators Jim Justice, Tommy Tuberville, and Roger Marshall. The legislation aligns with President Trump’s executive order calling for a national Bitcoin reserve.

Trump’s plan emphasizes the government’s role in responsible digital asset management. It also mentions that the Bitcoin acquisition will not require taxpayer funding. According to David Sacks, Trump’s crypto advisor, the Bitcoin stockpile will be sourced from seized assets, ensuring no extra costs to taxpayers.

Senator Cynthia Lummis has become a leading voice for digital asset regulation in Washington after taking on the role of chair of the Senate Banking Subcommittee on Digital Assets. Her leadership position allows her to guide major conversations about how digital assets should be managed and integrated into U.S. financial policy.

In July 2024, at the Bitcoin Conference in Nashville, Lummis introduced her proposal for a U.S. strategic Bitcoin reserve. The plan would require the U.S. Treasury to accumulate Bitcoin, positioning it as a long-term asset rather than a speculative one.

The initiative follows a 2022 proposal by former U.S. Representative Tim Draper, who suggested that the government could seize 1 million BTC over a five-year period to bolster national reserves. Draper’s proposal focused on using a portion of the U.S. Treasury’s annual operating funds for these acquisitions.

Both proposals aim to create a strategic Bitcoin reserve, similar to the U.S. Strategic Petroleum Reserve, which was established during the 1973 oil crisis to mitigate energy shortages.

Senator Lummis’s proposal is a response to concerns about the U.S. dollar’s role in the global financial system and the growing influence of cryptocurrencies. Her proposal builds upon President Trump’s 2024 executive order, which directed government agencies to explore the creation of a U.S. Strategic Digital Currency Reserve.

The executive order also mandated the development of a comprehensive framework for digital asset regulation, considering issues such as anti-money laundering, know-your-customer obligations, and cybersecurity.