Senator Lummis Reintroduces BITCOIN Act, Paving the Way for US to Hold Over 1 Million BTC

Senator Cynthia Lummis Reintroduces Landmark Bitcoin Bill

US Senator Cynthia Lummis has reintroduced the BITCOIN Act in the 119th Congress, with notable changes and new co-sponsors. This bill seeks to empower the US government to acquire and hold over 1 million Bitcoin as part of a newly established national reserve.

Initially introduced in July 2024, the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025 outlines a five-year plan in which the US government would acquire 200,000 BTC annually. The total acquisition of 1 million Bitcoin would be funded by reallocating existing funds within the Federal Reserve and the Treasury Department. However, the reintroduced version goes beyond just direct purchases. It now allows for the acquisition of Bitcoin through lawful means such as civil or criminal forfeitures, gifts, or transfers from federal agencies.

Moreover, the bill enables US states to voluntarily contribute their own Bitcoin holdings to the strategic reserve, though those contributions would be stored in a separate, segregated account.

A Vision for Financial Innovation

In a statement at a March 11 conference hosted by The Bitcoin Policy Institute, Senator Lummis emphasized the long-term benefits of the bill. “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,” she stated. The revamped bill not only offers a path to acquiring Bitcoin but also seeks to solidify the US’s leadership in the global financial landscape.

New Co-Sponsors and Bipartisan Support

The reintroduced bill has garnered the support of several new co-sponsors, including Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Senator Justice expressed his support for the bill, calling it a critical step in bolstering the nation’s economic security while addressing the growing national debt. "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," Justice said. "This bill represents America’s continued leadership in financial innovation."

Key Changes in the Updated Bill

Several key changes have been made to the reintroduced bill, particularly in regard to Bitcoin forked assets and airdropped assets. Under the original bill, all forked assets were to be stored in the reserve and could not be sold or disposed of for five years unless authorized by law. The updated version introduces a more flexible approach: after the mandatory holding period, the Secretary of the Treasury will assess these assets' market value and retain only the most valuable assets, while ensuring the “dominant asset” is maintained in the reserve.

Bitcoin has undergone several hard forks in the past, most notably leading to the creation of Bitcoin Cash (BCH) in 2017 and Bitcoin Gold (BTG) later that same year. The updated bill now establishes a formal evaluation process for these forked assets, providing more clarity on their future within the strategic reserve.

Strategic Bitcoin Reserve and Digital Asset Stockpile

Lummis’ reintroduced bill comes on the heels of a related move by former US President Donald Trump, who signed an executive order establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” The reserve will initially use cryptocurrency forfeited from government criminal and civil cases, with the goal of building a long-term national reserve of Bitcoin. Notably, the reserve will not sell its Bitcoin holdings and will utilize “budget-neutral” strategies to increase the reserve’s size. Meanwhile, tokens from the Digital Asset Stockpile could be sold if necessary.

The creation of a strategic reserve reflects the growing recognition of Bitcoin and other cryptocurrencies as significant assets with potential benefits for the US economy. By maintaining control of these assets, the US aims to harness the power of digital currency to strengthen its financial position globally.

Looking Ahead: The Future of Digital Assets in US Policy

Senator Lummis’ reintroduced BITCOIN Act signifies a critical step toward formalizing the US government’s involvement in Bitcoin and other digital assets. With new co-sponsors, adjustments to the bill’s language, and growing bipartisan support, the bill has the potential to shape the future of US cryptocurrency policy. If passed, it could pave the way for a more strategic and secure approach to managing Bitcoin holdings, benefiting both the government’s financial stability and the broader cryptocurrency ecosystem.

As the bill moves through Congress, its impact on both the US economy and the global digital asset market will continue to be closely watched by industry leaders, policymakers, and investors alike.