In a dramatic turn of events that could reshape the global financial order, U.S. Senator Cynthia Lummis has declared that former President Donald Trump supports her new legislation — the BITCOIN Act. The bill proposes creating a 1 million Bitcoin strategic reserve for the United States, similar in function to the Strategic Petroleum Reserve (SPR). If enacted, the U.S. would annually purchase 200,000 bitcoins over five years, totaling a staggering reserve worth potentially trillions of dollars.
The claim, made during a policy summit in Washington D.C., has sent shockwaves across the cryptocurrency community, financial institutions, and global policymakers. The move could position the United States as a global leader in the new digital financial frontier.
What Is the BITCOIN Act?
The BITCOIN Act is an ambitious piece of legislation introduced by Senator Lummis to codify an executive order signed by Trump earlier in 2025, which established a preliminary Strategic Bitcoin Reserve. While that executive action relied on seized and forfeited BTC assets, Lummis’s bill proposes a structured government purchase plan to create a national BTC reserve.
The reserve aims to:
- Protect against fiat currency devaluation
- Secure national fiscal sovereignty
- Support global Bitcoin infrastructure
- Serve as a hedge during financial crises
The plan includes strict guidelines: the bitcoins will not be sold for at least 20 years, and their storage and access will be governed by a bipartisan oversight committee.
Trump’s Support for Bitcoin: From Skeptic to Strategist
Trump’s alleged endorsement marks a pivotal shift in his stance on digital assets. Just a few years ago, he was a vocal critic of cryptocurrencies, calling Bitcoin a threat to the U.S. dollar. However, recent developments suggest a sharp pivot.
Trump’s March 2025 executive order laid the groundwork for a government-backed Bitcoin reserve and signaled his administration’s willingness to embrace blockchain-based innovation. Now, with Lummis confirming his support of the expanded 1M Bitcoin plan, the crypto sector is eyeing unprecedented legitimacy.
According to Senator Lummis:
“President Trump understands that Bitcoin is not just a digital currency — it’s a strategic asset. With his backing, we can build a monetary fortress that secures America’s economic future.”
Potential Impact on U.S. Economy
The proposed reserve of 1 million BTC — worth over $60 billion at current prices — is not just symbolic. It would represent a significant shift in how nations store value and build financial resilience.
1. Debt Reduction Possibilities
Lummis and her co-sponsor Senator Jim Justice argue that the appreciation of BTC over the coming decades could potentially help reduce the national debt. If Bitcoin’s historical growth trajectory continues, the value of the reserve could multiply many times over.
2. Global Economic Strategy
This initiative could encourage other nations to follow suit. El Salvador has already made Bitcoin legal tender. If the U.S. becomes the first major economy to establish a large Bitcoin reserve, it could trigger a global race toward digital asset accumulation.
3. Increased Dollar Competitiveness
Paradoxically, anchoring some value in Bitcoin may strengthen the dollar’s credibility by showing openness to financial innovation, especially in the face of rising BRICS alternatives and CBDC-backed economies.
Critics Raise Concerns
Despite the hype, the proposal is not without controversy. Economists, financial watchdogs, and even some blockchain experts have raised red flags.
Volatility & Risk
Bitcoin’s notorious volatility makes it a risky asset for long-term reserves. A market downturn could severely devalue the U.S. strategic reserve in the short term, potentially impacting fiscal planning.
Centralization of a Decentralized Asset
Some Bitcoin purists argue that nationalization or government hoarding of BTC contradicts its core principles of decentralization and free-market distribution.
Political Polarization
As with any major policy proposal, partisan lines have quickly formed. While many Republicans back the plan, some Democrats express concern over the lack of regulatory clarity and environmental implications of Bitcoin mining.
What It Means for Bitcoin Investors
With Trump’s reported endorsement and rising political momentum, Bitcoin could receive a new wave of institutional and retail interest.
Institutional Confidence
If passed, the BITCOIN Act could drive large institutions to follow the government’s lead. Pension funds, university endowments, and insurance companies may start allocating to BTC more aggressively.
Price Surge Expectations
Analysts predict that if the U.S. begins acquiring 200,000 BTC per year, Bitcoin’s price could skyrocket due to increased demand and reduced circulating supply. This would make HODLing even more appealing for long-term investors.
Geopolitical Implications
Countries like China and Russia may interpret the U.S. reserve as a move to regain digital asset dominance. This could lead to new regulations, international BTC treaties, or increased mining competition.
Lummis’s Legislative Timeline and Next Steps
The BITCOIN Act will undergo congressional review, starting with the Senate Banking Committee. Lummis has emphasized bipartisan cooperation, suggesting that digital asset policies should rise above political divisions.
Key elements in the bill include:
- BTC purchases to be handled by the U.S. Treasury
- Long-term cold storage custody
- Annual transparency reports to Congress
- Public-private partnerships to ensure best practices in storage and security
Senator Justice has already confirmed co-sponsorship, and insiders suggest at least five more senators are considering joining the cause.
Final Thoughts: A Nation Powered by Code?
Senator Lummis’s announcement has stirred the digital financial pot. Trump’s alleged support provides the political clout needed to move such a bold initiative forward. As the lines between traditional finance and decentralized innovation continue to blur, the U.S. might just be preparing for a future where blockchain isn’t the alternative — it’s the foundation.
Whether you view Bitcoin as a libertarian experiment or the next step in monetary evolution, one thing is clear: America’s digital destiny is no longer a fringe idea. It’s being written — in code and law — by those at the very top.
FAQs
Is Trump officially endorsing the BITCOIN Act?
Senator Lummis claims he does, though no official statement has been released from Trump’s campaign.
How much will the U.S. spend to acquire 1 million Bitcoin?
At current prices (~$60,000 per BTC), the total outlay could be $60 billion over five years.
What happens if Bitcoin crashes?
The bill includes provisions for long-term holding, and the strategic reserve is not intended for short-term liquidation.
How will the Bitcoin be stored?
The Treasury will use cold storage methods with private sector support to ensure maximum security.
Could other countries follow this move?
Yes, if successful, the U.S. reserve may inspire other nations to establish similar Bitcoin reserves.
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