The US may hold more than 1 million Bitcoins

This article is machine translated
Show original

The BITCOIN bill reintroduced by Senator Cynthia Lummis could help the US accumulate more than 1 million Bitcoins through direct purchases, confiscation, and gifts.

Senator Cynthia Lummis has reintroduced the BITCOIN (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025) bill in the 119th Congress, accompanied by important adjustments and the participation of multiple co-sponsors. One notable aspect of this bill is the potential for the US government to own more than 1 million Bitcoins (BTC) as part of the national reserve, significantly expanding on the initial proposal.

The bill introduced in the previous July had proposed purchasing 200,000 Bitcoins per year for 5 years, totaling 1 million BTC, with funding reallocated from the Federal Reserve and the Department of the Treasury. However, the new version significantly expands the scope of Bitcoin acquisition.

Instead of relying solely on direct purchases, the government can accumulate Bitcoins through other channels such as civil and criminal forfeiture, gifts, or transfers from federal agencies. This approach helps reduce pressure on the market and leverage the existing pool of Bitcoins in the system.

Additionally, the bill allows states to voluntarily deposit Bitcoins into the national reserve, although these Bitcoins will be managed in a separate account. This mechanism promotes cooperation between the federal and state governments in managing digital assets, while also providing states with a safer option for Bitcoin storage.

Source: Senator Cynthia Lummis

Senator Lummis emphasized the importance of the bill in harnessing the potential of digital innovation to reduce national debt and strengthen global competitiveness. She stated: "By transforming the visionary executive order of the President into enduring legislation, we can ensure the nation maximizes the potential of digital innovation to address public debt and maintain a competitive edge in the global marketplace."

Furthermore, the bill establishes a formal evaluation process for assets generated from Bitcoin Hard Forks and Airdrops. Instead of requiring the storage of all forked assets in the reserve without the ability to sell for 5 years, the new bill empowers the Secretary to assess and retain only the highest-value assets based on market capitalization, in order to maintain a portfolio of liquid and high-value assets.

The reintroduction of the bill follows the executive order issued by President Donald Trump to establish a Strategic Bitcoin Reserve and a Digital Asset Reserve, leveraging confiscated cryptocurrency funds to optimize economic benefits for the nation.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments