TLDR
Wyoming Senator Lummis declares 2025 crucial for Bitcoin with David Sacks as “Crypto Czar”
Lummis introduces BITCOIN Act proposing 1 million BTC national reserve over 5 years
Trump administration promises to make US the “crypto capital” with clear regulatory framework
US government currently holds $21 billion in Bitcoin from seized assets
Multiple states including Ohio, Pennsylvania, and Texas pursuing Bitcoin treasury initiatives
Wyoming Senator Cynthia Lummis has unveiled ambitious plans to establish a national Bitcoin reserve, marking a potential turning point in U.S. cryptocurrency policy. The initiative comes as multiple states pursue their own Bitcoin treasury programs, pointing to growing mainstream acceptance of digital assets at various levels of government.
Lummis, often called the “Bitcoin Senator,” recently introduced the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act of 2024. The legislation proposes creating a Strategic Bitcoin Reserve with the goal of acquiring 1 million Bitcoin over five years, representing 5% of the total supply.
The proposed reserve would operate through a network of secure storage vaults and purchase programs. Rather than creating new debt, the initiative would be funded by reallocating existing Federal Reserve assets, including bonds and gold.
The U.S. government already holds an estimated $21 billion in Bitcoin, according to Arkham Intelligence data. These holdings, primarily from seized criminal assets, could potentially be integrated into the strategic reserve if the legislation passes.
President-elect Donald Trump has appointed venture capitalist David Sacks as “Crypto Czar” to oversee artificial intelligence and crypto policy initiatives. Trump’s administration has promised to protect domestic crypto mining interests and develop clear regulations to help the industry grow.
Sacks will work on creating a legal framework to provide the crypto industry with regulatory clarity, addressing a long-standing concern among cryptocurrency businesses operating in the United States.
The BITCOIN Act includes a mandatory 20-year holding period for the reserve assets, emphasizing a long-term commitment to Bitcoin as a strategic resource. During a speech at the Bitcoin conference in Nashville, Lummis suggested the reserve could help reduce the national debt by half before 2045.
At the state level, Ohio Representative Derek Merrin has introduced legislation that would allow the state treasury to invest public funds in Bitcoin. The bill represents one of several state-level initiatives to integrate cryptocurrency into government finance.
Pennsylvania has taken similar steps, with Representative Mike Cabell proposing legislation to allocate up to 10% of the state’s treasury reserves to Bitcoin. The measure is positioned as a strategy to protect against inflation.
Texas has proposed its own approach to Bitcoin adoption, with plans to fund a reserve through donations and allow Bitcoin payments for taxes and fees. This move aligns with the state’s growing reputation as a hub for cryptocurrency mining operations.
The timing of these initiatives coincides with Bitcoin reaching new price milestones, recently surpassing $100,000 for the first time. This price movement has attracted increased attention from government officials and institutional investors.
Trump’s incoming administration will include a reshuffle of key government positions, including a new SEC chair, potentially creating a more favorable environment for cryptocurrency regulation and adoption.
Senator Lummis has expressed optimism about 2025 being a pivotal year for Bitcoin and digital assets, citing the convergence of proposed policies and new government appointments. Her social media posts suggest close collaboration with Sacks on comprehensive digital asset legislation.
The federal government’s existing Bitcoin holdings from seized assets demonstrate the scale of cryptocurrency’s presence in federal finances, even before the proposed strategic reserve. These holdings could provide a foundation for expanded government involvement in the digital asset space.
State-level initiatives represent a parallel track of Bitcoin adoption, with different approaches emerging across various jurisdictions. These efforts range from direct investment proposals to tax payment programs, showing diverse strategies for cryptocurrency integration.
The post US Bitcoin Policy Takes Shape: National Reserve Plan and State Treasury Bills appeared first on Blockonomi.
