Senator Cynthia Lummis reintroduces legislation that would authorize the US government to acquire up to 1 million BTC

The BITCOIN Act aims to integrate digital assets into US financial strategy, requiring the Treasury Department to manage the acquisition and secure storage of Bitcoin.

Senator Cynthia Lummis has reintroduced legislation that would authorize the US government to acquire up to 1 million Bitcoin (BTC), formalizing President Donald Trump’s recent executive order establishing a federal Bitcoin reserve.

The BITCOIN Act, which Lummis first introduced last year, aims to integrate digital assets into US financial strategy. The bill, which now has five Republican Senators as cosponsors, would require the Treasury Department to manage the acquisition and ensure the secure storage of Bitcoin.

“This legislation is a critical step toward ensuring that our nation leverages digital assets to strengthen our economic future and maintain its global leadership,” Lummis said.

The bill's cosponsors include Senators Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH). Congressman Nick Begich has introduced a companion bill in the House.

If enacted, the bill would mandate the federal government to purchase up to one million BTC—currently valued at approximately $80 billion—over a period of five years.

The initiative would be partially funded by the Federal Reserve’s net earnings and adjustments to Treasury certificates based on the Fed’s gold holdings, covering the acquisition costs with updated valuations.

The proposal also includes the establishment of a decentralized network of secure Bitcoin storage facilities across the US. All Bitcoin acquired would be held for at least 20 years, with restrictions preventing any Treasury Secretary from selling more than 10% of the reserve in a two-year span.

Lummis’s bill deviates from the White House's stance on Bitcoin reserves. While Trump's executive order established a strategic reserve, senior officials have expressed a preference for indefinite holding of the reserve.

The administration has also highlighted the importance of budget-neutral approaches, contrasting with Lummis’s bill, which outlines a broader purchasing framework for the reserve.

This introduction follows increased political backing for crypto initiatives. Notably, pro-crypto advocacy groups played a key role in the electoral defeat of Senator Sherrod Brown, a vocal critic of the industry.

These developments could influence the bill's legislative trajectory. However, despite the bipartisan support for crypto in the lower chamber and the potential for swift passage of a relevant bill, the bill's overall chances of passage remain uncertain.

If passed, the BITCOIN Act would significantly shift US monetary policy, positioning Bitcoin as a formal reserve asset and reinforcing the country's role in the digital asset economy.