Senator Cynthia Lummis reintroduces the BITCOIN Act

The BITCOIN Act is back.

Senator Cynthia Lummis has reignited interest in her proposed legislation to establish a strategic U.S. Bitcoin reserve, rolling out the BITCOIN Act once again at a Bitcoin-focused event hosted by the Bitcoin Policy Institute.

The event, titled “Thinking Bitcoin,” brought together Lummis, Block founder Michael Saylor, and presidential candidate Vivek Ramaswamy for a discussion on advancing Bitcoin policy and adoption.

Lummis had teased the announcement with a short video message, hinting at big things to come and poking fun at the recent hype surrounding various institutions setting up small Bitcoin reserves.

The senator first unveiled the BITCOIN Act in July 2024, aiming to encourage Congress to take a more active role in managing the U.S.’s emerging role in the global Bitcoin network. However, the bill faced difficulties securing bipartisan support and advancing in Congress due to skepticism about its feasibility. It ultimately failed to pass and "died" at the end of the 2023–2024 congressional session.

To continue pursuing the initiative, Lummis must reintroduce the bill in the new congressional session.

The proposed legislation would create a strategic Bitcoin reserve managed by the Treasury, utilizing secure and decentralized storage in multiple locations across the U.S., taking into account forks, airdrops, and a five-year retention period.

The act also introduces a Bitcoin Purchase Program to buy up to 1 million BTC over five years, with the coins held for at least 20 years. Holdings would undergo independent proof-of-reserve audits to ensure transparency.

The legislation further grants states the freedom to store Bitcoin in segregated accounts and includes provisions to offset the costs involved. To fund the Bitcoin Purchase Program, the act allocates the first $6 billion of annual Fed remittances from 2025 to 2029.