A recently reintroduced bill by US Senator Cynthia Lummis, known as the BITCOIN Act, could enable the federal government to accumulate more than 1 million Bitcoin as part of a newly established strategic reserve.
Originally introduced in July, the bill mandates that the government acquire 200,000 BTC annually for five years, ultimately reaching 1 million Bitcoin. This acquisition would be funded by reallocating existing resources from the Federal Reserve and the Treasury Department.
However, the updated legislation, officially named the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2025, expands the scope of Bitcoin acquisition. Beyond direct purchases, the government could lawfully obtain additional Bitcoin through forfeitures related to criminal or civil cases, donations, and transfers from other federal agencies.
Furthermore, US states that choose to deposit their Bitcoin holdings into the strategic reserve will have their assets kept in separate accounts within the system.
Lummis Highlights National Strategy
Announcing the revised bill at a March 11 conference organized by The Bitcoin Policy Institute, Lummis emphasized the importance of cementing the initiative into law.
“By turning the president’s groundbreaking executive action into lasting legislation, we can secure our nation’s digital asset strategy, addressing national debt while strengthening our competitive position in the global financial landscape,” she stated.
New Co-Sponsors Join the Bill
The BITCOIN Act now has additional backing from several Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
“I’m honored to partner with Senator Lummis on this practical initiative to establish a strategic Bitcoin reserve and formalize President Trump’s executive order,” Justice remarked.
“This legislation affirms America’s leadership in financial innovation, bolsters economic security, and provides a responsible approach to tackling our national debt,” he added.
Additional Provisions
The revised bill also introduces a structured assessment process for Bitcoin-derived assets, including forked and airdropped tokens.
Previously, the bill required all forked assets to remain within the reserve and prohibited their sale or disposal for five years unless explicitly authorized by law. The updated version now mandates the Secretary to evaluate these assets after the holding period, retaining the highest-valued cryptocurrency based on market capitalization while maintaining the dominant Bitcoin asset.
Bitcoin has undergone several notable hard forks in the past, leading to the creation of cryptocurrencies like Bitcoin Cash (BCH) on August 1, 2017, and Bitcoin Gold (BTG) on October 24, 2017.
Lummis’ revamped legislation follows shortly after President Donald Trump signed an executive order establishing a “Strategic Bitcoin Reserve” alongside a “Digital Asset Stockpile.”
While the reserve will initially comprise Bitcoin seized in legal cases, the legislation ensures that the government will not liquidate these assets. Instead, it aims to expand the reserve through budget-neutral strategies, whereas tokens in the digital asset stockpile may be sold when necessary.
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