Senator Lummis pushes for Bitcoin Act to strengthen U.S. financial position

Senator Cynthia Lummis is urging Congress to pass the BITCOIN Act, a legislative effort designed to strengthen the United States’ financial position worldwide by establishing a strategic Bitcoin reserve. 

The legislation is presented as a way to put Bitcoin on the official scorecard and keep the U.S. competitive in an emerging digital economy.

Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, calls for action on the Bitcoin Act as debt soars, stating it is time to “buy, baby, buy.”

Larry Fink cautions that the growing federal debt levels could cause the U.S. to lose its reserve currency status

Lummis advocated for the bill on the social media platform X, where she outlined two key reasons for passing the Bitcoin Act. She argued that the legislation would help reduce America’s debt and emphasized that only one nation would amass enough Bitcoin to back its currency as the global reserve. She urged Americans to increase their Bitcoin holdings in response.

“The clock and next block are ticking. Let’s Go!”

~ Senator Cynthia Lummis

Her post came after BlackRock CEO Larry Fink recently warned in his 2025 Annual Chairman’s Letter that if federal debt levels continued to rise unchecked, the United States could lose its reserve currency status.

Fink noted that interest payments are projected to exceed $952 billion this year—surpassing defense spending—and that by 2030, all federal revenue could be consumed by mandatory outlays and debt servicing.

Although he remains optimistic about decentralized finance, Fink did admit that if confidence in the U.S. dollar continues to deteriorate, Bitcoin will be seen as a potentially more desirable choice.

On March 11th, Lummis introduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate.

In an announcement of the bill, the senator said, “Bitcoin is not simply a technological opportunity but a national imperative for America’s continued financial leadership in the 21st century.”

She emphasized that the bill would help the United States maintain its edge in global finance while addressing the long-term debt burden.

Lummis brings the Bitcoin bill before the U.S. Congress for the second time

A couple of weeks ago, President Trump signed an executive order creating a Strategic Bitcoin Reserve. This reserve will now include Bitcoin confiscated by federal authorities in the course of criminal or civil proceedings.

Senator Cynthia Lummis’ proposed Bitcoin bill will enshrine this executive order once it is signed into law. The bill also includes another provision mandating that the U.S. government purchase up to 1 million Bitcoins during five years—about 5% of the total Bitcoin supply.

The legislation goes on to say that the Strategic Bitcoin Reserve would match the size and importance of the United States gold reserves. The Department of the Treasury will govern the reserve through a decentralized network of secure Bitcoin vaults.

Furthermore, the bill emphasizes the self-custody rights of private Bitcoin holders and the Strategic Bitcoin Reserve’s non-infringement of those rights.

In July 2024, Lummis submitted a similar bill; Congress showed no interest, and it died. The bill had to be reintroduced in the current legislative session to revive this initiative.