Bitcoin News Today: Senator Lummis Backs BITCOIN Act for Strategic Reserve Framework

Generated by AI AgentCoin World
Friday, Aug 15, 2025 6:41 am ET1min read
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Aime RobotAime Summary

- Senator Lummis champions the BITCOIN Act as a budget-neutral framework to build a Strategic Bitcoin Reserve, emphasizing fiscal responsibility and transparency through quarterly disclosures.

- Treasury Secretary Bessent clarifies the government is not purchasing new Bitcoin but explores growth via seized assets, aligning with March’s executive order on digital asset leadership.

- The proposed 5-year program allows up to 1,000,000 BTC acquisition with a 20-year holding period, while Lummis advocates leveraging gold reserve revaluation to fund the reserve legally.

- Market volatility briefly spiked after Bessent’s initial remarks, but clarity restored confidence, underscoring the administration’s commitment to institutionalizing digital asset strategies.

Senator Cynthia Lummis, chair of the Senate Banking Subcommittee on Digital Assets, has reaffirmed her support for the

BITCOIN
Act as the central legislative blueprint for developing a Strategic Bitcoin Reserve in the United States. Lummis emphasized that the act provides a budget-neutral, fiscally responsible framework to expand the nation’s digital asset holdings without increasing the deficit or burdening taxpayers [1]. Her statements came in response to a clarification from Treasury Secretary Scott Bessent, who reiterated that the government is not purchasing additional Bitcoin but is committed to exploring ways to grow the reserve using seized assets and other budget-neutral strategies [1].

The BITCOIN Act proposes a five-year program authorizing up to 200,000 BTC per year—totaling 1,000,000 BTC—along with a 20-year minimum holding period to ensure long-term strategic stability. It also mandates quarterly, public proof-of-reserves disclosures, enhancing transparency for investors and policymakers alike [1]. Lummis has also expressed interest in leveraging the revaluation of gold reserves to fund the reserve without additional borrowing, a proposal that remains under scrutiny for its legal and macroeconomic implications [1].

Bessent’s initial comments on Thursday briefly caused a market reaction, sending Bitcoin down nearly 3.7%. However, his later clarification restored confidence, aligning with the broader administration’s March executive order that established the Strategic Bitcoin Reserve. The order instructed agencies to use forfeited Bitcoin and develop budget-neutral acquisition strategies, reinforcing the administration’s commitment to positioning the U.S. as a global leader in digital assets [1].

Lummis has worked closely with Bessent and Howard Lutnick to explore these budget-neutral pathways. She has also made clear that legislative action is necessary to codify the executive order into law, ensuring long-term institutional support for the Strategic Bitcoin Reserve [1]. The senator’s advocacy reflects a broader effort to balance innovation with oversight, aiming to provide a stable legal framework that encourages responsible investment and technological advancement [2].

While the BITCOIN Act has yet to pass, Lummis’ continued push for its enactment signals a strategic vision for integrating digital assets into the U.S. financial system. Her efforts highlight the importance of regulatory clarity in a rapidly evolving sector and underscore the potential for digital currencies to play a significant role in national economic policy [1].

Source:

[1] Newsbtc - https://www.newsbtc.com/bitcoin-news/bitcoin-act-still-america-playbook-senator-lummis/

[2] Mitrade - https://www.mitrade.com/au/insights/news/live-news/article-3-1042782-20250815