During his campaign, newly elected U.S. President Donald Trump made headlines with his bold proposal for a strategic bitcoin reserve, a plan that has now gained traction in the form of the ''Lummis Bill.” Republican Senator Cynthia Lummis has introduced legislation targeting the accumulation of one million bitcoins, currently worth approximately $108 billion.
Trump’s Bitcoin Advocacy Trump’s pro-bitcoin stance became clear during his campaign. At a bitcoin conference in Nashville, he announced that one of his first executive actions would be firing the current SEC chairman, signaling his intent to foster a crypto-friendly environment. Under his administration, he promised to remove regulatory barriers, support the U.S. bitcoin mining industry, and ban central bank digital currencies (CBDCs). Trump boldly declared that cryptocurrencies would “go to the moon” and “skyrocket like never before,” with a national bitcoin reserve being a key pillar of his plan.
The One Million Bitcoin Reserve Central to Trump’s proposal is the creation of a strategic national bitcoin reserve. His announcement focused on converting seized bitcoins held by the U.S. Department of Justice (DOJ) into a “permanent strategic reserve,” with sales of these assets prohibited. Over the past decade, the DOJ has seized approximately $22 billion worth of bitcoin through various law enforcement actions. Traditionally, these seized assets have been sold in smaller tranches, but Trump’s vision calls for the preservation of these holdings in a national reserve.
The Lummis Bill: A Step Toward Reality? On July 31, shortly after Trump’s speech, Senator Cynthia Lummis introduced the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide” (BITCOIN) Act in the Senate. Commonly referred to as the "Lummis Bill," the legislation aims to direct the U.S. Treasury to purchase additional bitcoin, eventually building a reserve of one million bitcoins—roughly 5% of the total supply. This reserve would rival the size of the U.S. gold reserves, positioning Bitcoin as a key asset in the country’s economic strategy.
Despite the ambitious nature of the proposal, the Lummis Bill has faced significant delays in the Senate, with little progress toward a vote. Nonetheless, Trump has continued to advocate for the establishment of a Strategic Bitcoin Reserve (SBR), signaling his commitment to the idea.
The Road Ahead The next steps in realizing Trump’s vision for a U.S. bitcoin reserve remain unclear. Converting the 200,000 bitcoins currently held by the DOJ into Treasury assets would likely be the first step toward building the reserve. However, further purchases and the broader implementation of this plan will require bipartisan support in the House of Representatives.
Whether the Lummis Bill will gain the necessary traction or whether Trump’s vision will materialize during his presidency remains to be seen. What is certain is that the idea of a national bitcoin reserve has sparked considerable interest in both the crypto community and the broader financial world. As Trump continues to champion the cause, all eyes will be on the progress of the Lummis Bill and its potential to reshape the U.S. economic landscape.
January 2025, Cryptoniteuae