Bitcoin News Today: Lummis' Gold-to-Bitcoin Shift Aims to Make U.S. Crypto Capital

Cynthia Lummis, a prominent advocate for cryptocurrency in U.S. politics, has stated that fundraising for the Strategic Bitcoin Reserve (SBR) could commence "anytime," despite ongoing legislative delays. The SBR, established under President Donald Trump's March 2025 executive order, aims to position the U.S. as a global leader in digital asset reserves. Lummis emphasized that while legislative bottlenecks persist, the groundwork laid by Trump's administration has enabled the technical and legal infrastructure to begin capitalizing the reserve.

The SBR is designed to hold government-owned Bitcoin and other digital assets, initially funded by forfeited cryptocurrencies from criminal and civil asset seizures. However, Treasury Secretary Scott Bessent has confirmed the U.S. will not directly purchase Bitcoin for the reserve, relying instead on seized assets. This approach has drawn criticism for limiting the reserve's growth, as only 15% of seized Bitcoin is currently eligible for use due to ongoing legal disputes or potential returns to private owners. Lummis has proposed an alternative: revaluing the U.S. gold reserves at current market prices to generate budget-neutral funds for Bitcoin acquisitions.

Lummis' BITCOIN Act, introduced in July 2024 and reintroduced in March 2025, seeks to codify the SBR and expand its funding mechanisms. The act would allow the Treasury to transfer revaluation gains from gold-currently undervalued at $42.22 per troy ounce versus the market price of $3,037-into Bitcoin. This approach, Lummis argues, avoids increasing the national debt while leveraging existing assets. The U.S. holds approximately 8,133 metric tons of gold, with a potential market value of $792 billion, creating a theoretical surplus of over $780 billion if revalued.

International reactions to the SBR have been mixed. While countries like Belarus and Bhutan have signaled interest in developing their own Bitcoin reserves, European Union officials have expressed concerns about financial stability risks. The European Central Bank explicitly ruled out holding Bitcoin, citing its volatility and lack of compliance with IMF criteria for foreign exchange reserves. Domestically, 16 U.S. states have introduced legislation to create state-level Bitcoin reserves, though only Texas and New Hampshire have passed measures.

The SBR's long-term success hinges on resolving legal and logistical challenges. The Treasury's 30-day deadline for agencies to report digital asset holdings expired in April 2025 without updates, raising questions about transparency. Additionally, the BITCOIN Act requires congressional approval, and Lummis has expressed willingness to collaborate with Treasury and Commerce officials to identify budget-neutral pathways. Critics, including economists surveyed by the University of Chicago in February 2025, argue that holding Bitcoin as a reserve asset introduces speculative risks and offers no clear strategic benefits.

As of July 2025, the U.S. government holds approximately 198,000 BTC, the largest known state-held Bitcoin reserve globally. Lummis' advocacy and the SBR's potential to leverage gold revaluation underscore the administration's broader strategy to position the U.S. as the "crypto capital of the world." However, the interplay between legislative action, market dynamics, and international regulatory scrutiny will shape the reserve's trajectory in the coming months.