Senator Cynthia Lummis has reintroduced her landmark Bitcoin Act Bill to the US Congress. This move could significantly alter America’s financial strategy. The Wyoming Republican announced on March 11, 2025, that she aims to mandate the United States to purchase up to 1 million Bitcoin over five years. The bill also requires the holding of these assets for at least two decades.
This legislative effort is coming just days after President Donald Trump established a Strategic Bitcoin reserve through executive order.
The Bitcoin Act Proposal
At a conference hosted by the Bitcoin Policy Institute, Senator Lummis announced reintroducing the Bitcoin Act. The announcement revives legislation that initially didn’t advance when first proposed in July 2024.
The bill was co-sponsored by West Virginia Republican Senator Jim Justice. The plan proposes acquiring approximately 5% of the total Bitcoin supply to be held as a strategic national reserve. This acquisition would represent an investment of approximately $80 billion at current market valuations. The Treasury Department was directed to purchase 200,000 BTC annually for five years to reach the targeted amount.
However, the framework includes strict guidelines preventing them from selling any of these Bitcoin holdings for at least 20 years. It will ensure the reserve remains intact through multiple presidential administrations.
Senator Lummis said, ‘Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century.’
Funding Strategy and Implications for Cryptocurrency Market
The Bitcoin Act includes specific provisions for funding the massive cryptocurrency acquisition without adding to the national debt. The proposed legislation would reduce the Federal Reserve’s discretionary surplus fund and allocate $6 billion annually from Fed remittances to the Treasury from 2025 through 2029.
However, challenges remain. Despite increased Republican unity on many issues, pockets of resistance to cryptocurrency still exist within the GOP. The bill’s substantial financial commitment may also face scrutiny from fiscal conservatives and skeptics who question Bitcoin’s long-term stability as a reserve asset.
If enacted, the Bitcoin Act would represent unprecedented government validation of cryptocurrency as a legitimate reserve asset. The legislation could also inspire similar strategies, similar frameworks, and similar legislation by other nations seeking to establish their cryptocurrency reserves.
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