The BITCOIN Act, aimed at establishing a Strategic Bitcoin Reserve and acquiring 1 million Bitcoin over five years, was introduced by Senator Cynthia Lummis in March 2025. Senator Lummis announced President Trump’s support for the bill, which was expected to be discussed in Congress the following week. However, there is no definitive evidence in the provided information confirming that the bill was scheduled to hit Congress specifically the week of May 29, 2025.
The bill, formally known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, directs the U.S. Treasury to purchase Bitcoin using existing Federal Reserve and Treasury funds in a budget-neutral manner, with the goal of holding it for at least 20 years to address national debt or financial strategy. The BITCOIN Act, formally the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, proposes the U.S. acquire 1 million Bitcoin over five years to establish a Strategic Bitcoin Reserve, with President Trump’s reported support.
If passed, the U.S. acquiring ~5% of Bitcoin’s total supply could significantly drive up its price due to increased demand and reduced available supply. X posts suggest this could trigger volatility, with institutional investors potentially rushing to allocate funds, amplifying market swings. The bill aims to be budget-neutral, using seized Bitcoin, tariff revenues, and Federal Reserve funds to acquire Bitcoin, which would be held for at least 20 years. Proponents argue this could hedge against national debt or dollar devaluation, positioning Bitcoin as a “digital gold” for financial stability.
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Supporters, like Senator Lummis, claim it could strengthen the U.S. dollar’s role in global finance by integrating Bitcoin as a strategic asset. Critics, however, warn it risks destabilizing markets if Bitcoin’s volatility persists. Critics, such as Peter Schiff, argue that funding the purchases through Federal Reserve mechanisms could exacerbate inflation by creating new money, potentially undermining the bill’s economic benefits.
The Act could legitimize Bitcoin as a state-backed asset, signaling federal confidence in blockchain technology. This might spur innovation in crypto-related industries and encourage institutional adoption. By treating Bitcoin as a strategic reserve, the U.S. could position itself as a leader in digital asset policy, potentially attracting global crypto businesses and talent, aligning with broader goals of boosting U.S. technological competitiveness.
The bill shifts U.S. crypto policy from regulatory oversight to active participation, potentially setting a precedent for other nations to adopt similar reserves. Proposals like “Bitcoin bonds” could integrate crypto into federal fiscal strategies, though details remain unclear. This could reshape how governments approach digital assets in debt management. Critics argue the bill could disproportionately benefit existing Bitcoin holders, potentially exacerbating wealth inequality.
The Act could mainstream Bitcoin, shifting its image from a speculative asset to a government-endorsed reserve, potentially increasing public and institutional trust. The bill, introduced by Senator Lummis with Republican co-sponsors, has garnered support from figures like Senators Jim Justice and Marsha Blackburn, and aligns with Trump’s pro-crypto stance. This partisan backing (6-0 Republican in the Senate) frames it as a conservative initiative.
Democrats like Senator Elizabeth Warren and Congressman Brad Sherman view Bitcoin skeptically, citing its use in illicit activities and threats to U.S. dollar dominance. This creates a partisan rift, with the bill facing an uphill battle in a divided Congress. The bill’s timing, close to the 2024 election, politicizes it further. Supporters see the bill as a forward-thinking move to embrace decentralized finance, countering inflation and enhancing U.S. competitiveness. They view Bitcoin as a hedge against fiat currency risks.
Critics, including some economists, argue that state-backed Bitcoin purchases risk financial instability due to its volatility and lack of intrinsic value. They fear it could undermine trust in traditional monetary systems. The crypto community on X is largely enthusiastic, seeing the bill as validation of Bitcoin’s strategic importance. However, mainstream skepticism persists, with concerns about environmental impacts of Bitcoin mining and its accessibility to average citizens.
The bill’s focus on government reserves may not address barriers to crypto adoption for underrepresented groups, potentially widening the gap between institutional and individual investors. The bill’s partisan nature and a divided Congress make passage uncertain, especially with potential veto threats from the current administration. Questions remain about how the reserve would be managed, including transparency (via a Proof of Reserve system) and state participation in segregated accounts.
Bitcoin’s price volatility could lead to significant losses if the market corrects after a government-driven price surge, posing risks to taxpayers. The BITCOIN Act could reshape U.S. financial and technological policy by legitimizing Bitcoin as a strategic asset, potentially boosting innovation and global competitiveness. However, it faces a stark divide: Republican enthusiasm versus Democratic skepticism, and crypto advocates versus traditionalist critics.