Why is Washington suddenly obsessed with hoarding Bitcoin? Senator Cynthia Lummis is leading the charge with her reintroduced BITCOIN Act in March 2025, proposing a Strategic Bitcoin Reserve that would acquire a staggering 1 million Bitcoin over five years.
It’s not just a random idea – the legislation builds directly on President Trump’s executive order that established a federal Bitcoin reserve. Now they want to make it permanent.
This isn’t Washington’s first Bitcoin rodeo—Trump’s executive order laid the groundwork for what Lummis now wants set in stone.
The bill isn’t messing around. It forces the Treasury Department to manage all Bitcoin acquisitions and demands a 20-year minimum holding period. No quick sells allowed, either – a maximum of 10% can be liquidated in any two-year period.
The government would spread storage across decentralized secure facilities, with states allowed to volunteer as Bitcoin vaults. The acquisition would represent approximately 5% of Bitcoin’s supply, creating significant impact on the market. Pretty serious stuff.
Where’s the money coming from? Not your taxes, supposedly. The plan taps Federal Reserve earnings and proposes revaluing gold certificates to fund the purchases. They’re calling it “budget-neutral.” Right.
Support is growing but still limited. Five Republican Senators jumped on as cosponsors, and Rep. Nick Begich introduced a companion bill in the House. Crypto lobbyists are working overtime, but passage remains anybody’s guess.
The economic rationale? Supporters claim it could help tackle our mounting national debt. VanEck’s analysis suggests 1 million Bitcoin might cover 18% of the debt by 2049. Critics scoff at this math when we’re running $2 trillion annual deficits.
Avik Roy, a prominent economic policy expert, has emphasized that Bitcoin alone cannot solve America’s debt problem without accompanying fiscal reforms to address underlying spending issues.
Beyond economics, the Act reshapes crypto regulation by shifting oversight from SEC to CFTC for certain assets and creating clearer compliance frameworks for businesses.
Proponents highlight that Bitcoin’s resilience during previous bear market cycles makes it a strategic long-term asset for government reserves.
Globally, it positions America to compete with other nations already embracing crypto policies. But the irony isn’t lost on anyone – the government centralizing a currency designed to be decentralized.
Washington hoarding Bitcoin. What a world.
