Updating the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act

Amid the growing intersection of national policy and cryptocurrency, Senator Cynthia Lummis of Wyoming has taken a remarkable step by updating the Boosting Innovation

Amidst the burgeoning intersection of national policy and cryptocurrency, the actions of elected officials are closely watched by the industry. In this vein, the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act was updated by Senator Cynthia Lummis of Wyoming. The legislation suggests that the United States should create a Strategic Bitcoin Reserve, which is intended to strengthen the dollar and help reduce the mounting debt the U.S. government owes.

The legislation, which was originally introduced in mid-July 2024, is being updated and reintroduced in March 2025. It comes as a number of government initiatives have sought to capitalize on the benefits offered by digital assets.

President Donald Trump Issues Order for Strategic Bitcoin Reserve and Digital Asset Stockpile

Most notably, President Donald Trump issued an executive order on March 6, 2025, which ordered the creation of a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile. The executive order directs federal agencies to coordinate on a plan for acquiring and managing both the Bitcoin (BTC) and other digital asset components of the stockpiles.

The executive order also directs the administration to identify opportunities to maximize the use of digital assets in government programs and operations.

The BITCOIN Act: A Closer Look

The legislation, known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, is intended to establish a framework for the responsible introduction of Bitcoin into the U.S. financial system. It proposes several key measures, including:

The legislation also specifies that the administrative, cybersecurity, and management protocols for the Strategic Bitcoin Reserve shall be determined in consultation with relevant federal agencies, taking into account best practices in cryptocurrency custody and safekeeping.

The BITCOIN Act, introduced by U.S. Sen. Cynthia Lummis, R-Wyoming, seeks to create a Strategic Bitcoin Reserve by transferring a portion of the government’s debt to a principal investment in BTC.

The legislation proposes that the Treasury periodically transfer an amount of outstanding marketable federal debt securities to the Federal Reserve. In turn, the Federal Reserve is directed to use the proceeds from the sale of those securities to acquire and hold BTC in a segregated and custodial account.

The legislation further specifies that the administrative, cybersecurity, and management protocols for the Strategic Bitcoin Reserve shall be determined in consultation with relevant federal agencies, taking into account best practices in cryptocurrency custody and safekeeping.

The legislation, known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, is intended to establish a framework for the responsible introduction of Bitcoin into the U.S. financial system. It proposes several key measures, including:

The legislation sets forth multiple objectives, including but not limited to:

One of the most interesting details of the BITCOIN Act is its anticipated funding:

The BITCOIN Act highlights the management and protection strategies for the planned reserve:

In the case of BITCOIN Act’s reinstitution, the following consequences stem for the United States financial system:

The BITCOIN ACT must be designed with some challenges and considerations in mind: