Senator Lummis Proposes $80 Billion Bitcoin Purchase to Address National Debt

Senator Cynthia Lummis has introduced the BITCOIN Act, a legislative proposal aimed at authorizing the U.S. government to purchase one million Bitcoin over a span of five years. This move is designed to enhance the existing reserve strategy under President Trump and to position the U.S. as a leader in digital asset management and debt mitigation.

Lummis' proposal seeks to formalize the U.S. government’s acquisition of Bitcoin, tapping into the potential benefits of this digital currency. By transforming the president’s executive action into enduring law, the legislation aims to ensure that the nation can harness the full potential of digital innovation to address national debt while maintaining a competitive edge in the global economy.

The BITCOIN Act proposes a significant shift in how the U.S. government approaches digital currencies. The acquisition of one million Bitcoin, valued at approximately $80 billion, supports previous initiatives and aims to create a legal framework for future digital asset management. The financial structure of the act is innovative, with the acquisition funded partly through Federal Reserve earnings and partly by issuing new certificates for gold holdings at current market prices. This approach allows the U.S. Treasury to invest in Bitcoin without direct budgetary impacts, making it budget neutral. The Treasury Secretary will oversee the acquisition and management of these assets, ensuring accountability within the federal government.

One of the key features of Lummis’ legislation is the stipulation that all newly acquired Bitcoin must be held for at least 20 years before any sales can occur. Additionally, it limits the sale of the reserve to no more than 10 percent every two years. This provision contrasts with the White House’s previous stance, which emphasized keeping the Bitcoin reserve indefinitely to maximize long-term value.

The BITCOIN Act is backed by a cohort of Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. In the House of Representatives, Rep. Nick Begich plans to introduce a similar bill, indicating a robust legislative push towards embracing digital currencies within the U.S. financial framework.

By articulating a clear vision for Bitcoin as a state asset, the BITCOIN Act could serve as a key tool in addressing the national debt. Lummis' proposal positions the nation to leverage digital innovation for economic growth, indicating a shift towards incorporating cryptocurrencies in national financial policies. This could set a precedent for future administrations and influence how digital assets are viewed within the broader scope of U