Bitcoin News Today: Senator Lummis Backs Confiscated Crypto-Funded Bitcoin Reserve Strategy

Senator Cynthia Lummis has publicly endorsed Treasury Secretary Scott Bessent’s plan to build the U.S. Strategic Bitcoin Reserve (SBR) using confiscated cryptocurrency rather than direct government purchases. This strategy, outlined by Bessent in a recent Fox News interview, aims to expand the nation’s digital asset holdings while avoiding further increases to the federal deficit, which now exceeds $37 trillion. Lummis praised the approach in a series of social media posts, calling it a “budget-neutral path” that aligns with fiscally responsible governance [1].

The SBR was established by President Donald Trump in March 2025 through an executive order, with the goal of positioning the U.S. as the “Bitcoin superpower of the world.” According to Bessent, the reserve will be funded primarily by Bitcoin that has been legally forfeited to the federal government. This includes assets seized during law enforcement operations. The Treasury remains committed to exploring additional budget-neutral methods to expand the reserve, ensuring the U.S. maintains a competitive edge in the evolving global crypto landscape [2].

Lummis, a long-time advocate for the BITCOIN Act, has consistently pushed for policies that promote digital asset adoption while maintaining fiscal discipline. In her public statements, she emphasized that purchasing more Bitcoin is not a viable solution to the nation’s debt challenges. Instead, she supports leveraging revalued gold reserves and confiscated crypto assets to fund the SBR. “We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR,” Lummis wrote in an X post [3].

This strategy has drawn mixed reactions from the crypto community. While some investors are disappointed that the government is not directly purchasing Bitcoin, others view the use of seized assets as a pragmatic and innovative approach. By avoiding new spending, the administration is addressing concerns from deficit hawks and reinforcing its commitment to fiscal responsibility. The plan also sidesteps potential legal and political hurdles that could arise from using taxpayer funds to buy cryptocurrency [4].

The Strategic Bitcoin Reserve is expected to play a central role in U.S. digital asset policy, influencing both domestic and international Bitcoin adoption. As the Treasury continues to explore non-budgetary methods to grow the reserve, the use of confiscated crypto remains a key component of the administration’s broader economic and technological strategy. This approach not only reduces immediate fiscal pressure but also ensures the U.S. remains competitive in the global digital asset race [1].

Sources:

[1] title1.............................(https://cryptonews.com/news/senator-cynthia-lummis-backs-budget-neutral-bitcoin-reserve/)

[2] title2.............................(https://www.benzinga.com/crypto/cryptocurrency/25/08/47146275/cynthia-lummis-backs-scott-bessents-commitment-to-build-bitcoin-reserve-without-burdening-us-taxpayers-i-have-a-bill-for-that)

[3] title3.............................(https://www.mitrade.com/insights/news/live-news/article-3-1042782-20250815)

[4] title4.............................(https://m.fastbull.com/news-detail/trump-administration-confirms-no-additional-bitcoin-purchases-4339764_0)