US Senator Cynthia Lummis’ newly reintroduced BITCOIN Act will enable the federal government to probably maintain greater than 1 million Bitcoin as a part of its newly established reserve.
The invoice, first launched in July, directs the US authorities to purchase 200,000 Bitcoin (BTC) a 12 months over 5 years for a complete acquisition of 1 million Bitcoin, which might be paid for by diversifying current funds throughout the Federal Reserve system and the Treasury division.
Nevertheless, the reintroduced act, the Boosting Innovation, Know-how, and Competitiveness by way of Optimized Funding Nationwide (BITCOIN) Act of 2025, opens the door for the US to amass and maintain in extra of 1 million BTC so long as it’s acquired by way of lawful means apart from direct buy, comparable to civil or prison forfeitures, items made to the US or transfers from federal companies.
Proud to re-introduce the BITCOIN Act. Let’s safe America’s monetary future.pic.twitter.com/jJFmMopP7h
— Senator Cynthia Lummis (@SenLummis) March 11, 2025
The additional Bitcoin may come from US states that voluntarily retailer their Bitcoin holdings within the strategic Bitcoin reserve, although it’ll be saved in a segregated account.
“By remodeling the president’s visionary govt motion into enduring regulation, we are able to be certain that our nation will harness the complete potential of digital innovation to handle our nationwide debt whereas sustaining our aggressive edge within the world financial system,” stated Lummis, who introduced the revamped invoice throughout a March 11 convention hosted by The Bitcoin Coverage Institute.
Lummis faucets new invoice co-sponsors
The BITCOIN Act additionally has numerous new co-sponsors, together with Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn and Bernie Moreno.
“I’m proud to hitch Senator Lummis on this commonsense invoice to create a strategic Bitcoin reserve and codify President Trump’s govt order,” Justice stated in a press release.
“This invoice represents America’s continued management in monetary innovation, bolsters each our financial safety, and offers us a chance to wrangle in our hovering nationwide debt,” he added.
Different modifications
The invoice additionally now units a proper analysis course of for Bitcoin forked property and airdropped property within the reserve.
Initially, the invoice required all forked property to be saved within the reserve and couldn’t be bought or disposed of for 5 years except approved by regulation.
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The brand new invoice now directs the Secretary after the obligatory holding interval to guage and retain probably the most beneficial asset primarily based on market capitalization whereas retaining the “dominant asset.”
Bitcoin has laborious forked numerous occasions up to now to create new cryptocurrencies, most notably Bitcoin Money (BCH), which forked on Aug. 1, 2017, and Bitcoin Gold (BTG), which forked on Oct. 24, 2017.
Lummis’ reintroduced invoice comes simply days after US President Donald Trump signed an govt order to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.”
The reserve and stockpile will initially use cryptocurrency forfeited in authorities prison and civil circumstances, however the reserve received’t promote the stashed Bitcoin and can use “budget-neutral” methods to extend its dimension, whereas tokens from the stockpile might be bought.
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