Senator Lummis reintroduces bill to allow US to reserve 1 million BTC: ensuring US financial leadership

Chair of the U.S. Senate Banking Committee on Digital Assets, Cynthia Lummis, posted on social platform X yesterday (11th) that she will be reintroducing a new version of the BTC Act, aiming to enshrine Trump's establishment of a BTC strategic reserve into law. (Background: MicroStrategy's Michael Saylor: Provides a "zero-cost" BTC reserve strategy; Grok also provides recommendations) (Context: Legally, what are the concerns about Trump's establishment of a BTC reserve? Can the next president overturn executive orders?) Last week, U.S. President Trump officially signed an executive order announcing the establishment of the U.S. BTC strategic reserve and digital asset reserve. While this demonstrates the current U.S. government's recognition of BTC, it also comes with two major issues: On one hand, the Trump administration's establishment of the BTC reserve adopts a budget-neutral strategy, using confiscated and slashed BTC as reserves without additional funds to purchase BTC; on the other hand, although Trump bypassed potential resistance from Congress by signing the executive order to establish the BTC reserve, his order could be overturned and modified by the next administration, resulting in its sustainability not being solidified through federal legislation. Cynthia Lummis Announces Submission of New Version of BTC Act As for the second issue, long-time supporter of cryptocurrency development, Chair of the U.S. Senate Banking Committee on Digital Assets, Cynthia Lummis, posted on social platform X yesterday (11th) that she will be reintroducing a bill allowing the government to hold over 1 million BTC as reserves. The reintroduced "2025 National Optimization Investment to Promote Innovation, Technology, and Competitiveness Act" opens the door for the U.S. to acquire over 1 million BTC, as long as these BTC are obtained through legal means other than direct purchases, such as civil or criminal forfeiture, donations to the U.S., or transfers from federal agencies. Additionally, extra BTC can also come from various U.S. states, with these states voluntarily storing their BTC holdings in the strategic BTC reserve, although it will be stored in a separate account. In a statement posted by Cynthia Lummis, she expressed: "Today, I am honored to reintroduce a landmark legislation that will enshrine President Trump's bold vision into law, establishing the U.S. strategic BTC reserve and strengthening our nation's economic foundation for generations to come. BTC is not just a technological opportunity but a necessary condition for the U.S. to maintain its financial leadership in the 21st century. By transforming the president's visionary executive actions into enduring law, we can ensure our nation fully harnesses the potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy. We are not just adapting to the future — we are actively shaping it, writing a new chapter in America's proud history of financial innovation, and ensuring lasting prosperity for all our citizens." The BITCOIN Act is back. pic.twitter.com/WNeU6SWPj3 — Senator Cynthia Lummis @SenLummis March 11, 2025 Trump Orders Establishment of U.S. Sovereign Wealth Fund Additionally, last week, Trump also signed an executive order directing the U.S. Treasury and Commerce Departments to establish a sovereign wealth fund within the next 12 months. This move is believed by the encryption community to potentially be used to establish a BTC strategic reserve. According to Reuters, Michael Grimes, a prominent technology investment banker who previously worked at Morgan Stanley, left the bank last month to become a senior advisor at the U.S. Commerce Department, expected to lead the U.S. sovereign wealth fund. Sources indicate that the fund's funding will come from the Customs and Border Protection, responsible for managing revenues generated from tariffs on imported goods. If Trump's current tariff strategy remains unchanged, the fund is expected to bring in hundreds of billions to trillions of dollars annually. Related Reports: U.S. Commerce Secretary: Trump to "announce BTC reserve" at White House encryption summit BTC surges to $91,000 Trump Signs Executive Order "Establishing BTC Reserve" BTC falls to $85,000, why no rise but a drop? Russia has no plans to establish BTC reserve, Finance Ministry: National Fund prefers yuan and gold Senator Lummis reintroduces bill allowing U.S. to reserve 1 million BTC: Ensuring U.S. financial leadership