Wyoming Senator Cynthia Lummis reintroduced the BITCOIN Act, a legislative proposal that could see the United States acquire 1 million Bitcoin (BTC)—valued at approximately $80 billion at current prices—over the next five years. The move aims to establish a strategic Bitcoin reserve, positioning the U.S. as a major player in the cryptocurrency space. First proposed in July 2024, the bill failed to gain traction then, but Lummis is now leveraging a shifting political landscape and growing institutional interest in digital assets to revive the effort.
The reintroduction comes amid heightened attention to cryptocurrency following a tumultuous period in the market, notably the $1.5 billion Bybit hack in February 2025, attributed to North Korea’s Lazarus Group. That breach saw over 401,000 Ethereum (ETH) stolen, shaking confidence in crypto security and prompting calls for stronger safeguards. Against this backdrop, Lummis’ plan seeks to integrate Bitcoin into the U.S. financial framework, a step she argues could bolster economic stability and counter global rivals like China and Russia.
The BITCOIN Act: Scope and Funding
The BITCOIN Act mandates the U.S. Treasury to purchase 1 million BTC, roughly 5% of Bitcoin’s total 21 million supply, over a half-decade period. To fund this, the bill allocates $6 billion annually from Federal Reserve remittances between 2025 and 2029, aiming for a budget-neutral approach that avoids additional taxpayer costs. The acquired Bitcoin would be stored in Treasury-managed vaults, mirroring the nation’s gold reserves, which Lummis cites as a model.
“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century,” Lummis said during her announcement at a Bitcoin Policy Institute conference on March 11. She framed the reserve as a hedge against inflation and a tool to reduce the $34 trillion national debt, echoing sentiments from crypto advocates like MicroStrategy’s Michael Saylor, who projected potential earnings of $106 trillion if the U.S. holds and grows its BTC stash.
The proposal builds on President Donald Trump’s recent executive order, signed last week, which established a Strategic Bitcoin Reserve using 198,109 BTC—worth $17.1 billion—already seized by federal authorities. Trump’s order prohibits selling these assets, but Lummis’ plan goes further, advocating proactive acquisition rather than reliance on confiscated holdings.
Expert Reactions and Challenges
Reactions to Lummis’ proposal are mixed. Nanak Nihal Khalsa, co-founder of Holonym, dismissed fears of centralized control, pointing out that Bitcoin’s consensus relies on miners, not token holders. “Even with 1 million BTC, the U.S. would hold less than 5% of supply—optics aside, it’s not a game-changer for decentralization,” he said. However, Stadelmann warned of potential market manipulation if state actors, including the U.S., enter the fray.
The bill faces significant hurdles. Its initial 2024 iteration stalled due to limited bipartisan support, and today’s polarized Congress may pose similar challenges. Lummis acknowledged this at a February 2025 hearing, noting, “We don’t have enough knowledgeable members of the House and Senate to feel comfortable with this yet.” With 18 states currently exploring their own crypto reserve bills—two, Arizona and Utah, nearing approval—some analysts suggest state-level adoption may precede federal action.
Erick de Moura, co-founder of Cartesi, sees the Bybit hack as a cautionary tale for any government-backed crypto initiative. “Web3 is only as secure as its weakest link,” he said, advocating for reproducible builds—software outputs verifiable via blockchain—to prevent front-end exploits like the one that felled Safe Wallet.
Broader Implications
If passed, the BITCOIN Act could reshape global crypto dynamics. Posts on X suggest it might trigger “global FOMO,” with nations racing to secure BTC reserves. Lummis herself argued on March 2 that U.S. adoption could “intimidate” rivals like China, shifting geopolitical competition into the digital realm. Yet, the plan’s feasibility remains under scrutiny, with critics questioning Bitcoin’s volatility and the logistics of securing such a stockpile.
For now, the crypto community watches closely. The Bybit hack has heightened awareness of security gaps, while Lummis’ bill tests whether the U.S. can marry Bitcoin’s decentralized ethos with national strategy. As Khalsa put it, “The protocol works as intended—it’s the human layer that needs fixing.” Whether Congress agrees may determine if this $80 billion vision becomes reality.
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