Trump’s executive order created a 200,000 BTC federal reserve at no taxpayer cost.
The BITCOIN Act proposes a 1 million BTC reserve locked for 20 years.
VanEck projects the reserve could offset $21 trillion in debt by 2049.
Senator Cynthia Lummis has renewed her push for the BITCOIN Act, saying the United States faces limited choices. Speaking on Capitol Hill, she stated the $36 trillion national debt requires a new approach.
https://twitter.com/SenLummis/status/1918326362793824750
According to her, the only viable route now includes a federal Bitcoin accumulation program. Lummis confirmed that former President Donald Trump supports the measure and has already taken steps to begin the reserve process.
Trump Backs Bitcoin Reserve to Fight U.S. Inflation
Trump signed an executive order earlier this year to form a national Bitcoin reserve. This reserve reportedly includes over 200,000 BTC, collected from forfeiture cases, with no taxpayer cost involved. The executive order uses what officials call “budget neutral” strategies, possibly funded through tariffs, according to Executive Director Bo Hines. However, Lummis stressed that executive orders can be overturned by future leaders. She said legislation is required to secure a long-term plan.
The BITCOIN Act proposes that the U.S. purchase 200,000 BTC per year for five years. These holdings would be locked for two decades, forming a 1,000,000 BTC reserve. Lummis explained that such a reserve could provide structure in monetary policy. She noted that confidence depends on the country’s ability to repay its debt. Without trust, she said, the system could collapse into a deeper crisis.
Besides economic stability, Lummis pointed to Bitcoin’s fixed supply as a key factor. She warned that inflation would worsen if money printing continued. According to her, unchecked inflation could push the country toward hyperinflation levels. She referenced historical crises in Zimbabwe and the Weimar Republic, saying ordinary Americans would face unaffordable prices.
BITCOIN Act Gains Bipartisan Support in U.S. Congress
The Senate proposal was originally introduced last year and reintroduced during the 2025 “Bitcoin for America” Summit. It has drawn support from members across party lines. In the House, Congressman Nick Begich has introduced a parallel version. His statement emphasized Bitcoin’s role in providing discipline and predictability in fiscal matters.
Lummis also argued that emerging technologies such as artificial intelligence, robotics, and blockchain can drive economic recovery. She said these tools can improve productivity and reduce costs, which gives the economy space to grow. These changes, she said, could help counterbalance national debt.Data from VanEck suggested the Bitcoin reserve could offset up to $21 trillion of U.S. debt by 2049. Lummis concluded by comparing the U.S. dollar to the British pound’s decline in influence. She said national value must now be stored in real, limited-supply assets. Both chambers continue to review the BITCOIN Act, with discussions focused on securing long-term national stability through asset-based planning.
