Sen. Lummis Gears Up To Present 1 Million Bitcoin Acquisition Bill To The Senate Next Week

At the Bitcoin 2025 conference in Las Vegas on Tuesday, Senator Cynthia Lummis, a staunch advocate for BTC and cryptocurrencies, announced that President Donald Trump supports the upcoming Bitcoin Act, which aims to facilitate the purchase of 1 million BTC and is expected to be introduced to Congress next week.

Long-Term Bitcoin Investment Strategy

Originally proposed by Lummis on July 31, 2024, the legislation seeks to establish a strategic BTC reserve for the US government, serving as an additional store of value to strengthen the nation’s balance sheet. 

The bill outlines a BTC Purchase Program designed to acquire approximately 5% of the total Bitcoin supply over a five-year period, mirroring the scale of US gold reserves. The BTC acquired would be held for a minimum of 20 years, ensuring a long-term investment strategy.

Following challenges faced by the previous administration under President Joe Biden, Lummis reintroduced the bill in March of this year, emphasizing the importance of institutional support for Bitcoin. 

A number of crypto industry leaders have also suggested innovative ways to implement this executive order, including proposals to use BTC for refinancing national debt.

US Government May Hold 200,000 BTC

One notable suggestion comes from the Bitcoin Policy Institute, which proposed the introduction of “BitBonds.” These would be structured US Treasury bonds that allocate 90% of the proceeds to traditional funding operations, while 10% would go toward BTC acquisition. 

The Institute estimates that, assuming a scale of $2 trillion in BitBonds, this initiative could generate annual interest savings of approximately $700 billion over a decade.

Matthew Sigel, head of digital asset research at VanEck, echoed this proposal during the Strategic Bitcoin Reserve Summit on April 15. 

VanEck’s plan also includes a similar 90%-10% bond structure, offering investors potential BTC gains with a cap of 4.5% annual yield. Any gains exceeding this threshold would be split equally between the government and bondholders.

While Lummis is enthusiastic about advancing the Bitcoin Act, the path to full Congressional approval remains uncertain. The success of the bill will depend on garnering support from her Senate colleagues, critical for increasing the nation’s Bitcoin holdings.

Fox journalist Eleanor Terret reported on X (formerly Twitter) that Lummis indicated the US government currently holds around 200,000 BTC. However, she noted that the information is not fully transparent due to classification following a mandated audit from the White House. 

When writing, the market’s leading cryptocurrency trades at $108,975, recording a slight retrace of 0.5% in the 24-hour time frame and 2.5% when compared to its record high of $111,800 reached last week. 

Featured image from DALL-E, chart from TradingView.com