Senator Cynthia Lummis joins the chorus of voices tipping a strategic Bitcoin reserve to help the U.S. tackle debt concerns.
Following President Donald Trump’s executive order on Thursday, March 6, establishing a reserve from Bitcoin seized by federal law enforcement agencies, everyone from asset managers to key industry voices has tipped the move to help the U.S. tackle debt concerns.
The latest to join this chorus is pro-Bitcoin Senator Cynthia Lummis, who recently reintroduced her Bitcoin reserve bill, the BITCOIN Act, which promises to enshrine the strategic reserve in U.S. law, ensuring it survives even after Trump leaves office.
“The BITCOIN Act is the solution to our national debt, and the future of American prosperity,” Lummis asserted in an X post on March 11 on the reintroduction of her bill to codify the establishment of a U.S. strategic Bitcoin reserve.
The bill, first introduced in July 2024, would see the U.S. buy 1 million BTC, nearly 5% of the total 21 million BTC supply, over five years “by diversifying existing funds within the Federal Reserve System and Treasury Department.”
With the U.S. deficit increasing at a concerning rate, the national debt, which currently stands at $36 trillion, has become a battering ram for Bitcoin proponents goading the government to establish a strategic reserve of the digital asset.
The argument is premised on the belief that Bitcoin has exponential growth potential as a scarce asset. Simply put, proponents like Lummis believe that one day the asset will be so valuable that the U.S. will be able to leverage a reserve of it to clear its debt.
“Bitcoin is Special”
Surmising the view of these Bitcoin proponents, White House crypto czar David Sacks recently asserted that the digital asset was “special.”
“We do think Bitcoin is special,” Sacks declared in a Saturday, March 8 episode of the All-In podcast.
Amongst other things, the famed startup investor hailed the network’s enduring security over the past 15 years and the potential for its price to grow with more acceptance.
“I mean, I remember back in 2011 I think it’s the first time I bought a Bitcoin. I think it was at $120. Now it’s at $90,000,” he stressed.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
