Key Takeaways
- Lummis' BITCOIN Act allows the US to hold over 1M Bitcoin.
- The bill mandates purchasing 200,000 BTC per year for five years.
- Bitcoin can also be acquired via forfeitures, gifts, and state contributions.
Senator Cynthia Lummis has reintroduced the BITCOIN Act, allowing the US government to acquire and hold more than 1 million Bitcoin.
The bill, first introduced in July, mandates the purchase of 200,000 BTC annually over five years, using existing Federal Reserve and Treasury funds.
Key provisions
The revised bill, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, also permits Bitcoin acquisitions beyond this limit through civil or criminal forfeitures, gifts, and transfers from federal agencies.
Additionally, US states can contribute their Bitcoin holdings to the federal reserve, which will be stored in a segregated account.
Legislative intent
Lummis stated at a March 11 Bitcoin Policy Institute conference:
By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy.
Co-sponsors & support
The bill has new co-sponsors, including Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
Additional changes
Other key changes include a formal evaluation process for Bitcoin forks and airdrops.
After a mandatory holding period, the Secretary will retain the most valuable forked asset based on market capitalization while ensuring Bitcoin remains the dominant asset in the reserve.
Context of reintroduction
The reintroduction follows President Trump’s recent executive order establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile, which will initially use forfeited Bitcoin and budget-neutral strategies for accumulation.
