In Brief
Senator Cynthia Lummis’ BITCOIN Act aims to make the US the largest Bitcoin holder by acquiring 1 million BTC and integrating it into national reserves for financial security.
US Senator Cynthia Lummis has reintroduced the BITCOIN Act, an important piece of legislation that would allow the US government to buy and store over 1 million Bitcoins in strategic reserves. Originally proposed in July, this measure has been revised and reintroduced in March 2025 with numerous additional clauses. The BITCOIN Act, which has received strong support from a number of Republican Senators, is a key step toward incorporating Bitcoin into the nation’s financial and strategic structure.
The Structure of the Bitcoin Act
The major goal of the BITCOIN Act is to instruct the US government to purchase Bitcoin in a controlled and methodical manner over the course of five years. The measure demands the purchase of 200,000 Bitcoin every year for a total of 1 million Bitcoins by the conclusion of the five-year timeframe. These acquisitions will be funded by diversifying existing assets inside the Federal Reserve and the Treasury Department rather than via additional government appropriations.
However, the new BITCOIN Act does more than merely mandate Bitcoin purchases. The latest version of the law permits the US government to go beyond the one million Bitcoin target. This is conceivable through mechanisms other than direct acquisitions, including civil and criminal forfeiture, gifts to the US government, and transfers from federal agencies. The addition of these various methods of collecting Bitcoin allows the government to potentially acquire more than 1 million BTC, provided it follows legal regulations.
Strategic Reserves and Bitcoin’s Role
The BITCOIN Act requires that Bitcoin obtained through these means be held in a segregated account overseen by the federal government. Individual US states can also freely maintain Bitcoin holdings in this strategic reserve. While the reserve will largely be used to strengthen the national financial system, it also marks a more innovative approach for the United States to employ digital assets to address long-standing financial challenges, including the national debt.
Senator Lummis’ objective is to establish a national Bitcoin reserve that will act as a hedge against the volatility of fiat currencies while also contributing to the country’s long-term financial stability. The reasoning for this project is clear: in a global economy increasingly dominated by digital currencies, a strategic Bitcoin reserve might allow the US to preserve a competitive edge while also addressing its growing debt.
The renewed BITCOIN Act has acquired political traction, with numerous Republican Senators joining as cosponsors. These include Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. The support of such a diverse array of politicians demonstrates the rising acknowledgment of Bitcoin’s capacity to transform the financial environment.
Senator Jim Justice of West Virginia stated his support for the measure, citing its potential to strengthen America’s leadership in financial innovation. “This bill represents America’s continued leadership in financial innovation, bolsters both our economic security, and gives us an opportunity to wrangle in our soaring national debt,” Justice Thomas said in a statement. His remarks reflect the widespread belief that Bitcoin and other digital assets might play an important role in addressing some of the US government’s most serious financial difficulties.
Bitcoin’s Strategic Significance in US Economic Policy
The US government’s interest in holding such a large number of Bitcoin stems from its potential as a store of value. Historically, Bitcoin was viewed as a substitute for conventional forms of wealth such as gold. Its decentralized character and limited supply make it an enticing choice for governments seeking to diversify their reserves while mitigating the dangers of inflation and currency devaluation.
The BITCOIN Act represents the US government’s forward-thinking strategy to adapt to the quickly evolving global financial environment. By acquiring a substantial amount of Bitcoin, the government will position itself to gain from the cryptocurrency market’s continuing expansion. Bitcoin has the potential to provide the United States with a strategic advantage in the international arena as digital currencies become more prevalent and institutional use grows.
New Provisions for Forked and Airdropped Assets
The proposed version of the BITCOIN Act also tackles a critical issue in crypto: the management of forked and airdropped assets. Initially, the bill required all forked assets (new cryptocurrencies created as a result of Bitcoin’s hard splits) to be placed in the strategic reserve. These assets could not be sold or disposed of for five years unless specifically approved by law. However, the proposed law takes a more sophisticated approach.
Following the mandated holding time, the Secretary of the Treasury will be expected to assess the market worth of any forked assets and keep the most valuable ones based on market capitalization. This provision prevents the US government from accumulating assets with little value or promise. Furthermore, the “dominant asset” must be kept, which means that Bitcoin will remain the focal point of the reserve even if other forked assets or airdrops are contemplated.
Bitcoin has already suffered multiple hard forks, the most notable of which resulted in the formation of Bitcoin Cash and Bitcoin Gold. These forks divided the original Bitcoin blockchain into different networks, resulting in new coins. While some investors value forked assets, the new BITCOIN Act clause assures that only the most valuable assets are held in reserve.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
Victoria d’Este
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
