US Senator Cynthia Lummis Reintroduces BITCOIN Act Bill Aiming to Allow the Government to Hold 1 Million BTC

A US Senator has reintroduced the BITCOIN Act Bill, which aims to allow the government to legally hold more than 1 million Bitcoin as part of the newly established Strategic Bitcoin Reserve.

A US Senator has Handling a second attempt at the BITCOIN Act Bill that aims to allow the government to legally hold more than 1 million Bitcoin as part of the newly established Strategic Bitcoin Reserve has been tabled in the Senate.

Announcing the move via her social media space X, the crypto-loving Senator handled a second attempt at the legislation, which aims to build on President Donald Trump’s executive order that desires to make BTC a core financial asset for the Federal government.

The BITCOIN Act bill, first introduced in July 2024, sought to direct the US government to purchase at least 200,000 BTC annually for five years, for a total acquisition of 1 million Bitcoin. Diversifying funds from the Treasury Department and the Federal Reserve System would pay for the acquisition.

Create a Decentralized Network of Secure Bitcoin Vaults

Nonetheless, the newly reintroduced Bill dubbed the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, is designed to open the door for Donald Trump’s government to acquire and hold over 1 million Bitcoin as long as the administration acquires them through lawful means in addition to direct purchases. The other legal means could include criminal and civil forfeitures, transfers from federal agencies, or gifts made to the US government.

The proposed BITCOIN Act Bill aims to create a “decentralized network of secure Bitcoin vaults” overseen by the Treasury, where vast quantities of the assets would be held in cold wallets. Giving further comments on her X handle, Lummis said:

“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.”

According to the Bill, the Treasury Secretary would organize to acquire the new Bitcoin and maintain the Reserve. The Bill further proposes that all purchased BTC be held for at least 20 years before it can be liquidated. Additionally, the sitting or future Treasury Secretaries would not be allowed to sell over 10% of the Reserve within two years.

Many More Senators Support Bill

Several Republican Senators that have come up to support the reintroduced BITCOIN Act Bill include Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH), who are cosponsors of the Bitcoin Act. Republican Nick Begich intends to introduce a companion bill in the US House of Representatives. Senator Justice said in a statement:

“I’m proud to join Senator Lummis on this common-sense bill to create a strategic Bitcoin reserve and codify President Trump’s executive order […] this bill represents America’s continued leadership in financial innovation, bolsters both our economic security and allows us to wrangle in our soaring national debt.”

Senator Tommy Tuberville also threw his support behind the Bill, arguing that Bitcoin should be used to pay off the national debt:

“Like President Trump, Bitcoin has shaken up the status quo in Washington D.C. and is completely revolutionizing the way Americans invest in their futures […] creating a Strategic Bitcoin Reserve is an important step in making sure the United States remains the strongest economy in the world.”

Conclusion

Senator Cynthia Lummis has tabled the BITCOIN Act Bill a few days after US President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The Reserve will initially hold digital assets forfeited in civil and criminal cases and won’t sell Bitcoin. While the tokens could be sold, the Reserve won’t sell the stashed Bitcoin and proposes to use “budget-neutral” ways to increase its size.

Frequently Asked Questions (FAQs)

What does the BITCOIN Act say?

The BITCOIN Act outlines a plan for the United States to acquire a massive Bitcoin reserve comparable in size to its gold holdings. The government would launch a one-million-unit Bitcoin purchase program, granting the US control over approximately 5% of Bitcoin’s total supply.

How would the new Bill affect the executive order recently signed by President Donald Trump?

If passed into law by Congress, the BITCOIN Act would codify President Trump’s Bitcoin reserve plan and take it a step further.

What’s the difference between a Strategic Bitcoin Reserve and a Digital Asset Stockpile?

A strategic Bitcoin reserve would concentrate on holding Bitcoin as a reserve asset, while the Digital Asset Stockpile would encompass any other forfeited assets that might be strategically managed or sold over time.