Pro-crypto U.S. Senator Cynthia Lummis has revived legislation aimed at establishing a Strategic Bitcoin Reserve and launching a nationwide BTC purchase program. The bill, officially named the Bitcoin Act, seeks to align the United States with the evolving digital economy by securing Bitcoin as a strategic asset.

Key Provisions of the Bitcoin Act

The Bitcoin Act, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, was first proposed in July 2024. Due to the new legislative term, it required reintroduction, and on March 11, 2025, Senator Lummis announced its revival.

The bill has garnered support from multiple Republican co-sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno. Lummis emphasized the bill’s importance, stating that it will “strengthen our nation’s economic foundation for generations to come.”

Strategic Bitcoin Reserve: A National Initiative

One of the primary objectives of the Bitcoin Act is the creation of a network of secure Bitcoin vaults, which will be managed by the U.S. Treasury Department. These vaults will serve as storage facilities for the proposed Strategic Bitcoin Reserve, which aims to accumulate 1 million BTC, representing approximately 5% of Bitcoin’s total supply.

To achieve this goal, the bill introduces the Bitcoin Purchase Program, which authorizes the government to acquire 200,000 BTC annually for five years, with a mandated 20-year holding period. Funding for this initiative will be sourced by diversifying existing assets from the Federal Reserve and Treasury funds. Additionally, the legislation reinforces the self-custody rights of private Bitcoin holders.

Support and Economic Justifications

Senator Jim Justice referred to the initiative as a “common-sense bill”, noting that while he continues to learn about Bitcoin, he sees the economic logic in such an effort. Senator Tommy Tuberville added, “There’s no reason why we shouldn’t use Bitcoin to pay down our national debt.”

Bernie Moreno echoed similar sentiments, stating that the $36 trillion national debt necessitates innovative financial strategies, making a Strategic Bitcoin Reserve a critical tool for improving the country’s balance sheet.

Additionally, the bill seeks to reduce discretionary surplus funds of the Federal Reserve from $6.8 billion to $2.4 billion while redirecting $6 billion in Federal Reserve remittances to the Treasury over the next four years.

State-Level Bitcoin Reserve Updates

Beyond the federal initiative, several U.S. states are actively considering Bitcoin reserve legislation. According to the Bitcoin Reserve Monitor:

• 19 states have pending Bitcoin reserve legislation.
• 2 states are in the final stages of approval.
• 5 states have rejected proposals allowing their treasuries to invest in BTC.

This movement at the state level aligns with broader federal efforts to integrate Bitcoin into the country’s financial system.

Market Reaction and Bitcoin Price Movement

Following the bill’s reintroduction, Bitcoin experienced a minor recovery, gaining 4.6% to reach $83,000 during early Asian trading hours. However, the asset remains down nearly 30% from its all-time high, reflecting broader market volatility.

With growing legislative momentum and political support, the Bitcoin Act could mark a pivotal shift in the U.S. government’s approach to digital asset adoption, further cementing Bitcoin’s role in national financial strategy.