US Senator Cynthia Lummis has relaunched the BITCOIN Act, which would enable the government to possibly accumulate over 1 million Bitcoin as part of a newly created reserve.
This legislation, which was initially proposed in July, mandates the US government to purchase 200,000 Bitcoin (BTC) annually for five years, eventually reaching a total of 1 million Bitcoin. Funding for these purchases would come from reallocating existing resources within the Federal Reserve and the Treasury department.
Additionally, the revamped act, known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, permits the US to acquire and hold more than 1 million BTC through legal means other than direct purchases, such as civil or criminal forfeitures, donations made to the US, or transfers from federal agencies.
Proud to re-introduce the BITCOIN Act. Let’s secure America’s financial future.pic.twitter.com/jJFmMopP7h
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
The additional Bitcoin could also originate from US states that choose to deposit their Bitcoin assets in the strategic reserve, although these funds will be kept in a distinct account.
“By converting the president’s visionary executive action into lasting legislation, we can guarantee that our country will leverage the full potential of digital innovation to tackle our national debt, all while retaining our competitive advantage in the global market,” remarked Lummis, who unveiled the revised bill during a conference on March 11, hosted by The Bitcoin Policy Institute.
Lummis secures new co-sponsors for the bill
The BITCOIN Act has garnered several new co-sponsors, including Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
“I’m honored to support Senator Lummis on this pragmatic bill aimed at establishing a strategic Bitcoin reserve and formalizing President Trump’s executive order,” Justice stated.
“This legislation signifies America’s ongoing leadership in financial innovation, enhances our economic security, and presents an opportunity to rein in our escalating national debt,” he added.
Additional adjustments
The bill now includes a formalized assessment process for Bitcoin forked assets and airdropped assets held within the reserve.
Previously, it mandated that all forked assets be retained in the reserve for five years before any sale or disposal, unless legally permitted.
Related: Texas Senate passes Bitcoin reserve bill while New York targets memecoin scams: Law Decoded
The revised legislation instructs the Secretary to analyze Bitcoin assets post-mandatory holding period and retain the most valuable ones based on market capitalization, along with the “dominant asset.”
Bitcoin has undergone several hard forks in the past to create new cryptocurrencies, most notably Bitcoin Cash (BCH) on August 1, 2017, and Bitcoin Gold (BTG) on October 24, 2017.
The relaunch of Lummis’ bill occurs just days after a US President signed an executive order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”
Initially, the reserve will utilize cryptocurrencies forfeited through government criminal and civil proceedings, but it will not sell the accumulated Bitcoin and will seek “budget-neutral” methods to expand its size, while tokens from the stockpile could potentially be liquidated.
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