Senator Cynthia Lummis is pushing for the US government to buy Bitcoin, creating a massive “Strategic Bitcoin Reserve” (SBR). She believes this could seriously reduce the national debt.
How it Could Work
Lummis is looking at around 200,000 Bitcoin already seized by the US Marshals Service as a potential starting point. She’s working with the Treasury Department to figure out if they even have the legal power to buy and hold Bitcoin for the government, or if new laws are needed.
Her plan involves turning this seized Bitcoin into an initial investment for the SBR. This would be the first time the US government openly bought Bitcoin as a strategic asset.
Paying for the Bitcoin
Lummis also proposes using the government’s gold reserves. Currently, the official value of US gold is way below the market price. Her proposed legislation would update the gold valuation and use the difference to buy more Bitcoin, aiming for a million Bitcoin over five years.
She believes that holding this Bitcoin for 20 years could cut the national debt in half, thanks to Bitcoin’s potential price appreciation. She’s backed up by financial modeling, including work from experts like Michael Saylor.
Political Support and Bipartisanship
Lummis is encouraged by President Trump’s recent executive orders promoting digital assets in the US. She sees this as a major shift from previous administrations that largely ignored the topic. However, she stresses the importance of keeping the Bitcoin initiative bipartisan, not just a Republican cause.
At the time of this writing, Bitcoin was trading at $84,202.
