Lummis' BITCOIN bill: BTC reserve to rescue US debt

* Senator Cynthia Lummis reintroduces the BITCOIN Act in 2025, aiming to establish a Bitcoin Reserve Strategy for the United States.

• The bill will be presented to the Senate for discussion, while a similar version is being considered in the House.

At the 'Bitcoin for America' summit of the Bitcoin Policy Institute in Washington, D.C., Senator Cynthia Lummis officially reintroduced the BITCOIN Act of 2025. This is a legislative effort to integrate Bitcoin [BTC] into the United States' financial reserves.

This bill follows the executive order of President Donald Trump, which established a reserve of Bitcoin seized from federal seizures.

Introduced in 2024 but not passed, the bill is back with amendments and stronger support from key Republican senators.

Source: X

Lummis, a long-time supporter of Bitcoin, emphasizes the importance of the bill, stating,

"Bitcoin is not only a technological opportunity, but also a national mission to maintain the financial position of the United States in the 21st century."

She is supported by a coalition of sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

At the Senate, Senator Nick Begich introduced a supplementary bill, supported by six Republican co-sponsors.

Begich called this effort a "bold and far-sighted legislative initiative" to ensure the United States maintains its leading position in the global digital economy.

Trump's executive order is just the beginning

Last week, President Donald Trump signed an executive order to establish a Bitcoin Reserve Strategy, allocating 200,000 BTC worth over $16 billion at the current market price.

This order places these assets under federal control, but without legislation from Congress, future administrations could change this policy.

Source: X

The BITCOIN Act seeks to permanently legitimize the holding of Bitcoin in the U.S. Treasury, ensuring that the government actively accumulates BTC instead of relying on asset seizures.

Michael Saylor, of Strategy (formerly MicroStrategy), supports Senator Lummis's stance, emphasizing the need for U.S. leadership in embracing Bitcoin. He said,

"I am here today to show you how Bitcoin reserves represent a strategy for the digital dominance of the United States in the 21st century."

If passed, the bill will require the government to purchase BTC through transfers from the Federal Reserve and the Treasury's funds, not directly using people's tax revenues.

Source: X

One million Bitcoins? The United States has a plan for that!

The BITCOIN law of 2025 aims to legalize the holding of Bitcoin, ensuring that this policy cannot be altered by future policies.

This plan includes the purchase of 200,000 BTC annually over a period of 5 years, allowing the United States to accumulate one million Bitcoins by 2029. These assets must be held for at least 20 years and will be managed by the Treasury.

Funding for these transactions will come from transfers from the Federal Reserve, gold certificates, and assets of the Ministry of Finance, not relying on people's tax money.

Trump's cryptocurrency policy advisor, David Sacks, has asserted that,

"This will not cost a penny from the people's tax money."

Financial analysts have commented on the potential impact of a Bitcoin reserve in the United States.

Can Bitcoin save the US financial balance sheet?

A recent report by VanEck, a $115 billion asset management company, estimates that if the United States accumulates one million BTC and holds them until 2049, the reserve could be worth $42.4 trillion.

At that valuation, holding Bitcoin could offset 35% of the expected national debt, significantly improving the financial position of the United States.

Even with a conservative estimate, VanEck believes that Bitcoin could cover at least 18% of the US debt if the growth trend continues. However, critics warn that the price volatility of Bitcoin poses risks.

If this asset undergoes prolonged periods of decline, its effectiveness as a reserve asset may be affected.

Bitcoin holds at 81K USD—but fear dominates the market

While Bitcoin is still maintaining above $81,000, market sentiment has significantly declined.

Source: CoinMarketCap

The Fear and Greed Index of cryptocurrencies, monitoring investor sentiment, has dropped into the 'Extreme Fear' zone. Crypto Rand believes,

"Bitcoin and the entire cryptocurrency market [are] entering a state of extreme fear. These levels have not been seen for over 4 years."

The BITCOIN Act will continue to be presented to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, where legislators will consider the economic and security implications of the bill.

Meanwhile, Representative Begich's bill in the House is preparing to begin the legislative process.

Can Congress strengthen Bitcoin's position in the US reserve?

If both bills pass their respective chambers, a joint vote of the House and Senate could send the bill to President Trump's desk for signature.

Although the bill faced opposition from some lawmakers concerned about Bitcoin volatility, increasing support from the Republican Party and public endorsement by Trump are increasing the chances of success.

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