Republican Senator Cynthia Lummis Reintroduces Bitcoin Act to Establish a Strategic Bitcoin Reserve

Republican Senator Cynthia Lummis has today reintroduced her bill to establish a strategic Bitcoin reserve, taking a legislative path towards President Donald Trump's plan for such a reserve.

Republican Senator Cynthia Lummis has reintroduced her bill to create a strategic Bitcoin reserve, taking a legislative path towards President Donald Trump’s plan for such a reserve.

Lummis, known as the “Bitcoin senator”, resubmitted the bill on Tuesday. The bill, originally introduced in December, would direct the U.S. government to purchase one million BTC (roughly 5% of the total Bitcoin supply) over the course of five years.

The move comes just days after President Trump issued an executive order to create a strategic Bitcoin reserve and digital asset stockpile, which will include various other crypto assets confiscated by the U.S. government “in connection with criminal or civil asset forfeiture proceedings.”

Lummis Reintroduces Landmark Bitcoin Act

On Tuesday, Wyoming Senator Cynthia Lummis, known as the “Bitcoin senator”, resubmitted a bill that would create a strategic Bitcoin reserve to help “bolster America’s balance sheet.”

The bill, dubbed the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act,” or BITCOIN ACT, would direct the U.S. government to purchase one million BTC (roughly 5% of the total Bitcoin supply) — a sum valued at around $82 billion at press time — over the course of five years. That huge purchase would be partly financed by the net earnings of the Federal Reserve.

“By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy,” Lummis said in a Tuesday statement posted on X.

Lummis’ proposed legislation would create a “decentralized network of secure Bitcoin vaults” overseen by the Treasury, where huge quantities of the asset would be held in cold wallets.

The Treasury Secretary would be responsible for organizing the purchase of new Bitcoin and maintaining the reserve. All new BTC added to the reserve would have to be held for at least 20 years before it could be liquidated. Moreover, any sitting or future Treasury secretary would be barred from selling over 10% of the reserve within two years.

Notably, fellow Republican senators Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH) are cosponsors of the Bitcoin Act. Republican Nick Begich intends to introduce a companion bill in the U.S. House of Representatives.

Progress Toward A U.S. Bitcoin Reserve

In January, President Trump signed an executive order directing federal officials to study the feasibility of a national Bitcoin stockpile. It was one of the first major crypto-related actions of Trump after retaking the White House.

Currently, at least 19 states in the U.S. are exploring the possibility of deploying the world’s first cryptocurrency as part of their financial strategy. Some states like Texas and Arizona are currently in the final stages of the approval process.

In November, prominent cryptographer and Blockstream CEO Adam Back speculated that the nationwide approval of a US Bitcoin reserve could propel Bitcoin above the seven-figure mark in this cycle.