Senator Lummis Introduces Bill for U.S. to Acquire 1 Million Bitcoin

Senator Cynthia Lummis has reintroduced legislation that seeks to authorize the U.S. government to acquire up to 1 million Bitcoin (BTC). This move formalizes a recent executive order by President Donald Trump, which established a federal Bitcoin reserve. The BITCOIN Act aims to integrate digital assets into the U.S. financial strategy, with the Treasury Department tasked with managing the acquisition and secure storage of Bitcoin. Lummis views this bill as a proactive measure to ensure economic stability and innovation, positioning the U.S. as a global leader in digital assets.

The bill has garnered support from five Republican Senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. In the House, Congressman Nick Begich has introduced a companion bill. If enacted, the legislation would require the federal government to purchase up to 1 million BTC over five years, with the initiative partially funded by the Federal Reserve’s net earnings and adjustments to Treasury certificates based on the Fed’s gold holdings. The proposal also mandates the establishment of a decentralized network of secure Bitcoin storage facilities across the U.S. All acquired Bitcoin would be held for at least 20 years, with restrictions preventing any Treasury Secretary from selling more than 10% of the reserve in a two-year span.

Lummis’ bill diverges from the White House’s stance on Bitcoin reserves. While Trump’s executive order established a strategic reserve, senior officials have indicated a preference for indefinite holding rather than scheduled acquisitions. The administration has also emphasized the importance of budget-neutral approaches, whereas Lummis’ proposal outlines a broader purchasing framework. The introduction of this legislation follows increased political backing for crypto initiatives, with pro-crypto advocacy groups playing a key role in the electoral defeat of Senator Sherrod Brown, an outspoken critic of the industry. These developments could shape the bill’s legislative trajectory, though its passage remains uncertain.

If passed, the BITCOIN Act would mark a significant shift in U.S. monetary policy, positioning Bitcoin as a formal reserve asset and reinforcing the country’s role in the digital asset economy. The legislation reflects a growing recognition of Bitcoin's potential as a store of value and a medium of exchange, further solidifying its role in the global economy. The proposed acquisition of 1 million BTC is a significant move that could have far-reaching implications for the future of digital currencies and the U.S. economy. This initiative underscores the U.S.'s proactive approach to