Key Takeaways
- Senator Lummis reintroduced the BITCOIN Act at a Bitcoin conference.
- The bill proposes acquiring up to 1 million BTC over five years.
- Trump's executive order formalized policies for seized Bitcoin assets.
Senator Cynthia Lummis announced the reintroduction of the BITCOIN Act today at a Bitcoin Policy Institute conference.
The event featured notable Bitcoin advocates, including Michael Saylor and Vivek Ramaswamy.
Background of the bill
Lummis first proposed the bill in July 2024, but it failed to gain bipartisan support, effectively expiring at the end of the 2023–2024 congressional session.
To remain active, legislation must be reintroduced in a new session.
Strategic Bitcoin Reserve proposal
Under the new proposal, the Treasury would oversee a strategic Bitcoin reserve with secure, decentralized storage across the U.S.
The bill also includes provisions for handling Bitcoin forks and airdrops, requiring a five-year retention period for such assets.
Bitcoin purchase program
The act proposes a Bitcoin Purchase Program that would acquire up to 1 million BTC over five years, with holdings maintained for at least 20 years.
Transparency measures include independent proof-of-reserve audits. States would also be allowed to store Bitcoin in segregated accounts.
Funding the acquisition
To fund the acquisition, the bill allocates the first $6 billion of annual Federal Reserve remittances from 2025 to 2029.
Legislative context
Lummis’ proposal follows President Donald Trump’s executive order last week, which formalized policies for managing seized Bitcoin assets but did not include new purchases.
David Bailey, CEO of BTC Inc, emphasized that legislative action is the next step in securing a strategic Bitcoin reserve.
