- The BITCOIN Act proposes a 1M BTC reserve over five years.
- Trump’s order made the U.S. the top sovereign Bitcoin holder.
- VanEck says reserve could offset $21T debt by 2049.
In a renewed push to reshape the United States’ monetary structure, Senator Cynthia Lummis introduced the BITCOIN Act on Capitol Hill, stating that the federal government must act decisively to counter its $36 trillion national debt.
Backed by former President Donald Trump, the legislation outlines a long-term strategy that would see the nation acquire 1 million Bitcoin over five years. Lummis stressed that traditional economic solutions have run out and warned of consequences if no action is taken.
Act Proposes Annual Bitcoin Accumulation Over Five Years
The BITCOIN Act would authorize the U.S. to purchase 200,000 bitcoin annually for five consecutive years. These assets would be held for no less than 20 years. Lummis claimed the plan is designed to provide a stable, long-term reserve backed by a limited-supply digital asset. She said the plan offers a direct alternative to further debt accumulation or a default.
According to Lummis, the country is choosing between economic collapse, hyperinflation, or a pivot to digital assets and emerging technology. Earlier this year, President Trump signed an executive order to create a national Bitcoin reserve. This reserve was initially stocked with around 200,000 Bitcoin seized through forfeiture cases.
Executive Director Bo Hines confirmed that additional accumulation would proceed using revenue-neutral sources such as tariffs, without adding taxpayer burdens. Trump’s executive order made the U.S. the largest holder of Bitcoin globally. However, the order could be repealed by future administrations.
Congressional Support Expands Across Chambers
Representative Nick Begich introduced a matching bill in the House. His version mirrors the Senate proposal and reflects growing coordination on digital asset policy. He stated the act would establish a disciplined fiscal base using fixed-supply digital assets.
The BITCOIN Act was originally introduced at the 2025 “Bitcoin for America” Summit and has since gained bipartisan traction in Congress. Lawmakers backing the act are positioning it as a structural financial reform. According to VanEck, a global asset management firm, the proposed reserve could offset up to $21 trillion of U.S. debt by 2049.
Lummis described the dollar’s fading global influence, comparing its situation to the historical decline of the British pound. She warned that uncontrolled inflation could devastate working-class Americans and said that productivity tools such as AI, robotics, and crypto are vital. She emphasized the importance of combining technology and Bitcoin to reshape fiscal outcomes and avoid long-term economic damage.
