Senator Cynthia Lummis is optimistic about the potential creation of a strategic Bitcoin (BTC) reserve in the United States, with plans to introduce the bill early in Donald Trump’s presidency. Lummis, who has long championed the integration of Bitcoin into U.S. financial policy, believes bipartisan support will enable the passage of the Bitcoin Act within the first 100 days of Trump’s term.
“I believe we can get this done with bipartisan support in the first 100 days if we have the support of the people. It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act!” stated Senator Lummis.
The ambitious proposal is seen as a priority for both Lummis and BTC Inc. CEO David Bailey, who has been advising Trump on cryptocurrency policy. Bailey, in particular, has emphasized that a strategic Bitcoin reserve would have transformative implications for the economy, suggesting that the reserve could be a key focus of Trump’s early administration.
The Bitcoin Reserve Project: What We Know So Far
The idea of a Bitcoin reserve gained traction in July 2024 when Trump announced his intention to establish such a reserve during a campaign rally. In the days leading up to his announcement, reports emerged that Senator Lummis was preparing a bill—called the BITCOIN Act of 2024—that would formalize the creation of a Bitcoin reserve system in the U.S.
The proposed act would involve the creation of decentralized vaults across the country to securely store Bitcoin. Under the plan, the U.S. Treasury would acquire 200,000 BTC per year for the next five years, eventually amassing a total of one million BTC in reserves. The proposal also calls for the storage of Bitcoin for a minimum of 20 years. Bitcoin could be purchased using other assets held by the U.S. government, such as gold certificates, with the costs potentially offset by a revaluation of the cryptocurrency.
In addition, the bill would include measures for reserve verification to ensure transparency and accountability in the management of the Bitcoin reserves. It would also aim to consolidate any existing Bitcoin currently held by the U.S. government into the new reserve structure.
Bitcoin as a New U.S. Reserve Asset
Analysts have speculated that if the U.S. were to implement a strategic Bitcoin reserve, it could drive institutional and government interest in the cryptocurrency, leading to significant price growth. According to CoinShares analysts, the move could accelerate Bitcoin’s adoption and boost its market value.
Crypto industry experts such as Anthony Pompliano, founder of Pomp Investments, have expressed confidence that this initiative could trigger FOMO (fear of missing out) in the market. Lummis’ proposal could lead to a situation where the demand for Bitcoin outstrips the available supply, particularly as the U.S. government steps up its purchases. This could create a shortage of Bitcoin in the market, potentially driving up its price and spurring further interest from investors.
The Trump Rally and Bitcoin’s Record-Breaking Growth
The idea of a Bitcoin reserve has gained traction amid Bitcoin’s recent surge in value. Since the U.S. elections, Bitcoin has reached multiple new all-time highs. The cryptocurrency’s price has increased by nearly 24% in just one week, reaching $93,000. The overall crypto market capitalization has also surged by 25%, exceeding $3 trillion.
While some analysts, like Jesse Myers, co-founder of Onramp Bitcoin, argue that this market growth is largely due to the predictable effects of the Bitcoin halving (a reduction in mining rewards), others point to the shift in U.S. leadership as a catalyst. Myers noted that the shortage of Bitcoin following the halving has historically driven price increases, and this pattern is expected to repeat, with the new administration’s potentially crypto-friendly stance acting as an additional factor.
In any case, the strategic Bitcoin reserve is poised to be a major focus of the Trump administration, and its potential to reshape U.S. financial policy and the global crypto landscape is drawing increasing attention.
