Senator Lummis Proposes Acquisition of 1 Million Bitcoin for U.S. Strategic Reserve Amidst Heated Debate

Washington D.C. – U.S. Senator Cynthia Lummis (R-WY), alongside Congressman Nick Begich (R-AK), has introduced the "Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025." This landmark legislation aims to establish a Strategic Bitcoin Reserve (SBR) by directing the U.S. Treasury to acquire 1 million Bitcoin over five years, intended to bolster the nation's financial security and global standing.

Senator Lummis emphasized the strategic importance of the proposal, stating, "As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future." The bill seeks to position Bitcoin as a complementary asset to the U.S. dollar, mirroring the scale and strategic importance of existing gold reserves, and is designed to be funded through budget-neutral strategies, including revaluing gold certificates and utilizing existing forfeited Bitcoin.

However, the proposal faces strong opposition from critics like Nic Carter, a prominent Bitcoin analyst, who argues against the concept. In an article titled "I Don’t Support A Strategic Bitcoin Reserve, And Neither Should You," Carter contends that an SBR would undermine the dollar by signaling a loss of confidence in the current financial system. He stated in a recent social media post, "> there is no SBR. there probably never will be an SBR. and most importantly, there shouldn't be an SBR."

Carter further suggests that such a move would be politically imprudent, potentially alienating the general public who might perceive it as a wealth transfer to Bitcoin holders. He highlights that unlike commodities like oil, Bitcoin lacks an industrial use, questioning its "strategic" purpose. The analyst also warns of potential market chaos and spiking interest rates if the U.S. government were to embark on large-scale Bitcoin acquisitions.

Proponents of the BITCOIN Act, including MicroStrategy co-founder Michael Saylor, believe the reserve would act as a hedge against inflation and help reduce the national debt. The bill also includes provisions to affirm self-custody rights for private Bitcoin holders and mandates transparent management of the reserve through quarterly reports. The U.S. government currently holds approximately 198,021 Bitcoin, valued at over $24 billion, largely from law enforcement seizures.

The legislative path for the BITCOIN Act remains uncertain, despite gaining momentum following President Trump's expressed support for a strategic Bitcoin reserve. Observers note that while executive orders can initiate limited actions, a full-scale reserve would require significant congressional approval, navigating potential legislative hurdles and bipartisan disagreements on the economic implications and risks associated with Bitcoin's volatility.