Senator Lummis Proposes Bitcoin Reserve to Tackle $36 Trillion U.S. Debt

April 12, 2025 – Washington, D.C. In a bid to reshape U.S. fiscal strategy, Senator Cynthia Lummis (R-WY) has reintroduced the BITCOIN Act, a bold proposal calling for the U.S. Treasury to acquire 1 million Bitcoin over five years—with plans to hold it for at least two decades. The move is aimed at curbing the staggering $36 trillion national debt, tapping into Bitcoin’s potential as a long-term appreciating asset.

Speaking on Natalie Brunell’s podcast, Lummis claimed the strategy could “literally eliminate the debt,” projecting that a well-managed Bitcoin reserve could slash the national debt by half by 2045. The proposal arrives shortly after President Trump’s executive order to establish a Strategic Bitcoin Reserve, signaling a notable pivot toward embracing digital assets at the highest levels of government.

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The Vision Behind the BITCOIN Act

Formally titled the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, the BITCOIN Act outlines a federal Bitcoin acquisition plan funded by existing Treasury funds and Federal Reserve remittances—not new taxpayer dollars. Lummis argues that Bitcoin’s fixed supply and historical 55% annual return make it a powerful hedge against inflation, especially compared to fiat currency.

The act also proposes a decentralized storage solution, with Treasury-managed Bitcoin vaults across the country. These reserves would be auditable 24/7, ensuring transparency and public trust through real-time blockchain verification.

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Divided Reactions Across Political and Financial Circles

The proposal has ignited strong opinions. Supporters like Senator Jim Justice (R-WV) see it as a “common-sense” innovation to strengthen the nation’s fiscal foundation and drive global financial leadership. Tech mogul Michael Saylor, who famously led MicroStrategy’s Bitcoin accumulation strategy, backs the idea, estimating it could offset $16 trillion in debt by 2045.

But critics aren’t convinced. Avik Roy, President of the Foundation for Research on Equal Opportunity, pointed out that even a $200 billion Bitcoin reserve “barely dents” the debt, raising questions about the plan’s feasibility and scale. Others worry about Bitcoin’s price volatility, suggesting it’s too speculative for federal reserves.

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Why This Matters

If passed, the BITCOIN Act could radically shift the U.S. economic playbook—redefining debt management, inflation protection, and the government’s relationship with digital assets. It would also position the United States as a global leader in crypto-financial strategy.

With Republicans holding a Congressional majority, the bill stands a stronger chance than in years past. Still, the path forward will require bipartisan cooperation and navigating deep ideological divides over digital assets.

Whether revolutionary or risky, one thing is clear: Bitcoin has officially entered the halls of U.S. fiscal policy.