Senator Lummis’ BITCOIN Act Could Push US Government Bitcoin Holdings Beyond 1 Million BTC

U.S. Senator Cynthia Lummis reintroduced BITCOIN Act to Congress, aiming to establish a national Bitcoin reserve. The new bill, officially named the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, allows the U.S. government to hold more than one million Bitcoin (BTC).

US Senator Cynthia Lummis recently presented an updated version of her BITCOIN Act. Source: X

Originally introduced in July, the first version of the BITCOIN Act directed the government to buy 200,000 BTC per year. This plan would result in one million Bitcoins within five years. Funding for these purchases would come from reallocating existing resources from the Federal Reserve and the U.S. Treasury.

However, the updated BITCOIN Act now provides additional legal methods to accumulate Bitcoin beyond direct purchases. Under this revised law, the government can obtain Bitcoin through lawful means, such as seizures from criminal or civil cases, donations made to the United States, or transfers from other federal agencies.

The new bill also invites individual U.S. states to voluntarily place their Bitcoin holdings into the national reserve. States that decide to contribute will store their Bitcoin separately, ensuring transparency and accountability.

Senator Lummis emphasized the importance of transforming recent executive actions into long-lasting law. During a conference hosted by The Bitcoin Policy Institute on March 11, she stated:

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.

Prominent Republicans Join as Co-Sponsors of BITCOIN Act

Senator Lummis’s revised BITCOIN Act has attracted strong political support. Several notable Republican senators joined as co-sponsors, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

Several Republican senators joined as co-sponsors, including Jim Justice, Tommy Tuberville and others. Source: X

Senator Jim Justice praised the legislation and talked about its potential economic benefits:

“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. This bill represents America’s continued leadership in financial innovation, bolsters our economic security, and gives us an opportunity to wrangle in our soaring national debt.”

New Rules Set for Handling Forked and Airdropped Bitcoin Assets

The updated BITCOIN Act introduces specific procedures to manage Bitcoin-related assets created by blockchain forks and airdrops. A blockchain “fork” occurs when the Bitcoin network splits into two separate paths, creating new cryptocurrencies. Examples include Bitcoin Cash (BCH) in August 2017 and Bitcoin Gold (BTG) in October 2017.

The original bill required all forked assets received by the government to remain untouched for five years unless otherwise authorized by law. The revised bill now instructs the Secretary of the Treasury to formally evaluate these assets after the five-year holding period. The government will then retain the most valuable assets based on market capitalization, preserving the dominant asset while potentially disposing of less valuable cryptocurrencies.

Senator Lummis’s introduction of the new BITCOIN Act follows President Donald Trump’s recent executive order. Trump signed this order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”

Initially, the Strategic Bitcoin Reserve will receive cryptocurrencies forfeited by the government through criminal and civil proceedings. Unlike tokens in the Digital Asset Stockpile, which the government may sell, the Bitcoin Reserve will hold its Bitcoin permanently. Additionally, the reserve will grow through budget-neutral methods rather than direct spending.