- Senator Lummis proposes a U.S. Bitcoin reserve holding one million coins over twenty years to tackle national debt reduction.
- The plan starts with crypto assets seized by U.S. Marshals, avoiding immediate new laws but needing future legal protection.
Senator Cynthia Lummis unveiled a plan to create a U.S. Bitcoin reserve aimed at cutting the nation’s $33 trillion debt by half over the next twenty years. She proposes that the government accumulate one million BTC, which amounts to roughly five percent of all existing coins, to serve as a strategic reserve.
Lummis recommends using digital assets already held by the U.S. Marshals Service to fund the first year. The Marshals Service seized cryptocurrency in asset forfeiture cases, and those coins could seed the reserve without new laws. Later, she says, Congress will need to establish legal safeguards so that shifts in political power do not threaten the holdings.
Lummis insists on focusing exclusively on Bitcoin
She argues that its proof-of-work mining makes it more secure than other cryptocoins. Therefore, she sees Bitcoin as a dependable store of value. If its price rises as she expects, the reserve could reduce federal debt to about $16.5 trillion.
Top U.S. military officers in Southeast Asia have expressed support for this idea. They view Bitcoin as a hedge against economic pressure from rival nations. Lummis links the reserve to broader competition with China, reasoning that crypto assets can complement traditional tools like currency reserves and trade alliances.
Meanwhile, Lummis praised President Donald Trump for his early Bitcoin investments, calling him a forward-thinker in digital finance. She says Americans should understand the benefit of adopting new financial tools while the market is still young.
Lummis says Congress would need to pass a bill to launch the reserve formally. In the first year, existing government-held crypto could suffice. Thereafter, the federal budget would set aside funds to buy approximately 50,000 BTC each year. This systematic approach, she insists, would prevent sudden market shocks and allow the reserve to grow gradually.
Moreover, she is drafting rules for buying, holding, and selling the coins. She envisions an independent board or trust to make decisions, ensuring transparency and shielding the reserve from political meddling.
Furthermore, Lummis frames her proposal as a test of long-term fiscal strategy. She argues that a Bitcoin reserve could serve as a financial anchor in a crisis, similar to how gold or oil reserves function today. Therefore, she urges lawmakers to consider this plan as a way to combine fiscal policy with new technology.
If Congress approves the proposal, the government could begin accumulating Bitcoin immediately from its existing holdings. Over twenty years, annual purchases would build the reserve to one million coins. Then, if prices climb as expected, the proceeds could flow back into the Treasury, cutting the national debt.
