Senator Lummis Reintroduced the BITCOIN Act

Senator Cynthia Lummis has reintroduced the BITCOIN Act, a significant piece of legislation that could enable the US government to acquire and hold over 1 million Bitcoin as part of a newly established reserve.

Initially introduced in July, the bill mandates the purchase of 200,000 Bitcoin annually over five years, totalling 1 million BTC.

This acquisition would be funded by reallocating existing assets within the Federal Reserve and Treasury Department.

However, the reintroduced version, now titled the Boosting Innovation, Technology, and Competitiveness through Optimised Investment Nationwide (BITCOIN) Act of 2025, expands the scope.

It allows the government to accumulate more than 1 million Bitcoin through lawful means beyond direct purchase, including civil or criminal forfeitures, gifts, or transfers from federal agencies.

Additionally, the bill enables US states to contribute their own Bitcoin holdings to the reserve, with these assets stored in a separate, segregated account.

Announcing the revamped landmark bill at the 11 March conference hosted by The Bitcoin Policy Institute, she said:

“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century. By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy.”

Lummis Welcomes BITCOIN Act Cosponsors

The reintroduced BITCOIN Act has garnered significant support, with several new co-sponsors joining the initiative.

Among the notable backers are Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno, signalling growing bipartisan interest in the bill’s objectives.

Justice said in a statement:

“I’m proud to join Senator Lummis on this common-sense bill to create a strategic Bitcoin reserve and codify President Trump’s executive order.”

He added:

“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.”

BITCOIN Act Introduces New Changes

The reintroduced BITCOIN Act introduces a formal evaluation process for Bitcoin forked assets and airdropped tokens held in the reserve.

Initially, the bill mandated that all forked assets be stored in the reserve for a five-year holding period, without the option for sale or disposal unless authorised by law.

The updated bill now instructs the Secretary to assess and retain the most valuable asset by market capitalisation following the holding period, while ensuring the “dominant asset” remains in the reserve.

Bitcoin has experienced several hard forks in the past, such as the creation of Bitcoin Cash in August 2017 and Bitcoin Gold in October 2017.

This development follows closely on the heels of an executive order signed by former President Donald Trump, which established a "Strategic Bitcoin Reserve" and a "Digital Asset Stockpile."

The reserve will initially be funded through cryptocurrency forfeited in government criminal and civil cases, with plans to expand it in budget-neutral ways, while the stockpile may allow for the sale of tokens to generate revenue.

Lummis affirms that the “BITCOIN Act is the solution” to US’ national debt.

Lummis' Approach to Bitcoin Reserves Diverges from White House's Position

Lummis' reintroduced BITCOIN Act takes a distinct approach compared to the White House's stance on Bitcoin reserves.

While Trump's executive order established a strategic reserve, senior officials have expressed a preference for an indefinite holding strategy rather than a set acquisition plan.

The administration also prioritises budget-neutral methods, while Lummis' bill proposes a more structured framework for acquiring Bitcoin.

This shift in approach coincides with growing political support for cryptocurrency initiatives.

Pro-crypto advocacy groups, for example, were instrumental in the electoral defeat of Senator Sherrod Brown, a prominent critic of the industry.

These developments may influence the bill's progress, though its passage remains uncertain.

If successful, the BITCOIN Act could represent a major shift in US monetary policy, formally recognising Bitcoin as a reserve asset and further solidifying the country's position in the digital asset landscape.