- Senator Lummis proposes a 1M BTC U.S. reserve funded by Federal Reserve remittances.
- Trump’s executive order supports the accumulation of Bitcoin using seized assets.
Efforts to establish a U.S. Strategic Bitcoin Reserve have gained traction as Senator Cynthia Lummis reintroduces legislation directing the Treasury to accumulate 1 million BTC. The bill, originally proposed in 2024, outlines a five-year acquisition strategy funded by Federal Reserve transfers.
The BITCOIN Act is the solution to our national debt, and the future of American prosperity.https://t.co/lfA4xr2g8H
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
President Donald Trump’s executive order also aligns with this initiative, ensuring no taxpayer costs by sourcing funds from forfeited assets. The proposal has garnered support from key Republican senators and crypto advocates.
Strategic Bitcoin Reserve Proposal Gains Momentum
Senator Cynthia Lummis’s proposal positions Bitcoin as a national asset rather than a speculative investment. The bill directs the Treasury to allocate $6 billion annually from Federal Reserve remittances between 2025 and 2029 for Bitcoin purchases. It also involves the Federal Reserve’s gold certificates to back the initiative. Lummis emphasized that adopting Bitcoin is crucial for the U.S. to maintain financial dominance in the evolving digital economy.
The proposal has gained support from several Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. President Trump’s executive order reinforces the initiative by authorizing the use of seized assets for Bitcoin acquisition, avoiding any taxpayer burden. According to Trump’s crypto advisor, David Sacks, this move ensures responsible digital asset management while strengthening national financial security.
Political and Market Response to the Bitcoin Act
Senator Lummis, a leading advocate for digital assets, has been pushing for clearer crypto regulations since taking over as chair of the Senate Banking Subcommittee on Digital Assets. In July 2024, she introduced the Bitcoin Act, formally titled the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act.” The bill mandates secure Bitcoin vaults operated by the Treasury Department and a minimum 20-year holding period for acquired BTC.
Bitcoin’s price surged after Michael Saylor hinted at major developments, rising from $79,000 to $83,000. Market capitalization increased by 2.45%, reaching $1.62 trillion, though trading volume dropped by 18.63%.
Several lawmakers, including Jim Justice, have called the bill a “common sense” move. Tommy Tuberville suggested using Bitcoin to reduce the national debt, while Bernie Moreno emphasized that the initiative could help improve the nation’s financial stability.
U.S. States and Regulatory Landscape
Nineteen states currently have strategic Bitcoin reserve legislation pending, with two nearing final approval and five rejecting similar proposals. The Bitcoin Reserve Monitor tracks state-level developments as interest in crypto investments grows. As reported by ETHNews, President Trump signed an executive order establishing a strategic Bitcoin reserve using previously seized BTC assets.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) has delayed decisions on XRP, Dogecoin, and Litecoin filings, keeping market sentiment uncertain. Analysts had projected high odds for Litecoin, Dogecoin, and XRP ETF approvals, but regulatory hesitations persist. Bitcoin’s price briefly dropped below $78,000 before recovering to $82,000, leading to a slight uptick in major tokens like Ether, BNB, XRP, and Cardano’s ADA.
Senator Lummis continues advocating for Bitcoin’s role in national finance, pushing for its recognition as a long-term strategic asset. With growing political backing, the proposal could reshape U.S. financial policy in the digital age.
