Bitcoin News Today: "Senator Lummis Pushes Bitcoin as Digital Gold to Counter $37T Debt Crisis"

Senator Cynthia Lummis, a Wyoming Republican, has intensified her advocacy for a Strategic Bitcoin Reserve (SBR) as a solution to the U.S. national debt, which now exceeds $37 trillion, according to crypto.news. In a recent statement, Lummis declared the SBR "the only solution to offset our national debt," praising President Donald Trump's administration for embracing the initiative. The proposal, which gained traction under Trump, aims to establish a government-held Bitcoin reserve to act as a long-term hedge against inflation and a counterweight to the nation's fiscal challenges, CryptoNews reported.

Lummis' push for the SBR is part of a broader legislative agenda, including the BITCOIN Act of 2025, co-authored with Congressman Nick Begich. The bill mandates annual purchases of 200,000 BTC over five years, with the assets held for two decades to stabilize the economy. Lummis has argued that acquiring 1 million BTC—roughly 5% of Bitcoin's future supply—could "cut our debt in half in 20 years." The senator also emphasized that the reserve would grow in value over time, serving as a "balance sheet counterweight" to rising debt.

The SBR's funding mechanism remains under review, with officials exploring options beyond traditional financing. Lummis confirmed that the Treasury and White House are examining alternatives to gold revaluation, including leveraging Bitcoin already controlled by the Treasury through criminal or civil forfeitures. This approach aligns with reports suggesting the U.S. may already hold $14 billion worth of seized Bitcoin.

Parallel to the SBR, Lummis is advancing the Clarity Act, a landmark cryptocurrency regulation bill designed to end years of regulatory ambiguity. The legislation assigns oversight to the SEC and CFTC, enabling crypto firms to operate within clear boundaries while allowing traditional banks to offer digital asset services, Coinotag reports. Lummis has prioritized bipartisan collaboration, engaging daily with Democrats to refine the bill's scope ahead of a potential Banking Committee vote by year-end. The Clarity Act's broader focus on most crypto assets, unlike narrower proposals like the GENIUS Act, underscores its ambition to create a unified regulatory framework.

The senator's efforts intersect with global regulatory trends, including the European Commission's consideration of an SEC-style supervisor for crypto markets, according to a TradingView report. Such moves highlight growing institutional recognition of digital assets as critical components of modern finance. Meanwhile, market sentiment remains cautious, with crypto traders noting limited immediate impact from Trump's recent trade deal with China.

Lummis' advocacy reflects a strategic vision to integrate Bitcoin into national fiscal policy, positioning it as a modern counterpart to gold or oil. Her proposals, while ambitious, face challenges in execution, including securing bipartisan support for the Clarity Act and finalizing the SBR's funding structure. Yet, with the U.S. debt crisis deepening and Bitcoin's market capitalization surging, the senator's agenda underscores a pivotal moment in the intersection of cryptocurrency and public finance.