Senator Cynthia Lummis has introduced an updated version of the Bitcoin Act in the U.S. Senate, which would allow the government to hold over 1 million bitcoins within a newly established cryptocurrency reserve.
The proposal outlines that the U.S. will purchase 200,000 BTC annually over five years, reallocating current funds from the Federal Reserve and the Treasury Department. This would enable the accumulation of 1 million bitcoins.
The revised legislation permits the accumulation of cryptocurrency through legal means—such as confiscation, donations, or transfers from federal agencies.
U.S. states will have the option to voluntarily contribute their bitcoin reserves to a collective strategic stockpile. These assets will be held in a separate account.
Key provisions of the Bitcoin Act include:
- the creation of a decentralized network of secure bitcoin vaults managed by the Treasury, ensuring the highest level of physical and cybersecurity;
- the acquisition of 1 million BTC over a “designated” period to secure 5% of the cryptocurrency’s issuance, aligning with the size and scale of the U.S. gold reserve;
- funding the program through the diversification of existing Federal Reserve and Treasury funds;
- affirming the rights of private bitcoin holders to self-custody without infringing on individual financial freedoms.
Regulations concerning assets obtained from bitcoin forks have also been amended. Now, after a mandatory holding period in reserve, the secretary is granted the authority to select and retain the most valuable version of the asset, based on market capitalization.
During a speech at the Bitcoin Policy Institute conference, Lummis stated that the legislation would help the U.S. maintain its leadership in financial innovation and more effectively manage the growing national debt.
Proud to re-introduce the BITCOIN Act. Let’s secure America’s financial future.pic.twitter.com/jJFmMopP7h
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
Back in July 2024, Lummis introduced the original version of the Bitcoin Act, which proposed the creation of a reserve for the first cryptocurrency.