Senator Cynthia Lummis Brings Back U.S. Bitcoin Reserve Bill

Senator Cynthia Lummis, the new Head of the U.S. Historic Senate Subcommittee on crypto, has taken a major step focused on the country’s long-term economic plans. She has recently reintroduced a bill aimed at creating a national Bitcoin reserve. 

This move aligns with President Donald Trump’s executive order to set up a digital asset stockpile. This signals a growing push within the government to make Bitcoin part of the U.S. financial system.

The BITCOIN Act Returns with Updates

Senator Lummis first introduced this bill in July 2024. Now, she has made a few changes and brought it back under a new name. The refurbished bill is called “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act.” 

It is also known as the BITCOIN Act. The proposed bill is designed to help strengthen America’s financial position by using Bitcoin to strengthen the economy. 

The reintroduction of this bill comes just days after President Trump signed an executive order to create a Bitcoin reserve. Senator Lummis’ legislation seeks to make this order permanent by turning it into law. This means the government would always keep Bitcoin as part of its financial strategy.

How the Bitcoin Reserve Would Work

The bill suggests creating a decentralized network of Bitcoin storage vaults managed by the U.S. Treasury Department. These secure vaults would follow strict rules to protect the nation’s investment. 

The plan also includes buying one million Bitcoin units over a set period, giving the U.S. about five percent of the total Bitcoin supply. This plan resembles how the U.S. holds gold as a financial asset.

One of the bill’s key features is its funding mechanism. Instead of requiring new government spending, the reserve would be built using existing funds held by the Federal Reserve and the Treasury Department. 

This approach would allow the U.S. to invest in Bitcoin without adding to the national debt, making it a strategic move that aligns with financial stability goals.

Bitcoin Reserve Plan Gains Lawmakers Support 

Several Republican senators have supported the bill, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. In the U.S. House of Representatives, Republican Representative Nick Begich has introduced a similar bill.

Also, Strategy’s Chairman Michael Saylor suggests the U.S. government buy 5% to 25% of Bitcoin’s supply in the next decade. Meanwhile, the idea of a Bitcoin reserve has sparked mixed reactions. While some support these initiatives, some call it impractical and politically motivated.

Others believe it is a smart move that could change how the U.S. handles money. Bitcoin’s price has also been unstable. It is currently trading at $82.572, up 5.34%. Despite the market volatility, supporters believe Bitcoin will become more valuable over time.