BITCOIN Act aims to combat debt with strategic reserve
U.S. Senator Cynthia Lummis (R-WY) is urging Congress to pass the BITCOIN Act, legislation designed to establish a federal strategic Bitcoin (CRYPTO:BTC) reserve to counter rising national debt and protect the dollar’s global standing.
The bill, introduced on March 11, aligns with President Donald Trump’s executive order to create a U.S. Strategic Bitcoin Reserve, framing Bitcoin as a “national imperative” for financial leadership.
“The clock and next block are ticking: Let’s Go!” wrote Lummis, chair of the Senate Banking Subcommittee on Digital Assets, amplifying her advocacy on social media.
She argues the bill would help stabilise debt by authorising federal purchases of up to 1 million BTC over time, funded through diversification of existing Treasury and Federal Reserve assets—not new taxes.
The proposal responds to warnings from Blackrock CEO Larry Fink, who noted in his 2025 Annual Chairman’s Letter that U.S. debt risks eroding trust in the dollar.
Fink highlighted projections that federal interest payments could exceed $952 billion this year, surpassing defense spending, and consume all revenue by 2030.
While Fink supports decentralised finance, he acknowledged Bitcoin’s potential as a reserve alternative if dollar confidence declines.
The BITCOIN Act also mandates the creation of a decentralised network of secure Bitcoin vaults with strict cybersecurity and physical safeguards.
It reaffirms individuals’ rights to self-custody their holdings and prohibits the Federal Reserve from infringing on personal financial freedoms.
Critics have raised questions about the feasibility of large-scale federal Bitcoin purchases, given market volatility and regulatory uncertainties.
However, supporters argue the reserve could bolster U.S. competitiveness amid global shifts toward digital assets.
“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century,” stated Lummis, emphasising that the bill addresses both economic and geopolitical challenges.
At the time of reporting, the Bitcoin (BTC) price was $83,151.62.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Treasury quadruples borrowing estimate to $514B as debt ceiling standoff drags on
Share link:In this post: The Treasury raised its borrowing estimate for April-June to $514 billion because of a smaller cash pile. The end-of-March cash balance came in at $406 billion, way below the $850 billion the Treasury had predicted. Lou Crandall said new tariff revenue from President Trump might help, but the debt ceiling mess is still the main problem.
Trump’s tariff policy casts a shadow on Meta AI expenditure
Share link:In this post: Meta CEO Mark Zuckerberg unveiled plans to enhance Meta AI’s capabilities, as investors remained skeptical about how Trump’s tariffs impacted that strategy. Zuckerberg hinted that answers to the planned strategy could come this week as Meta prepared to host its first LlamaCon for developers on April 29th. Needham analysts expected Meta to follow Alphabet’s lead and remain firm in its plan to spend ~$65B in capex for AI infrastructure this year.
FTX initiates legal action to recover creditor asset from NFT Stars and Kurosemi
Share link:In this post: FTX is suing NFT Stars and Kurosemi to recover crypto assets transferred under agreements before the exchange’s collapse. The representatives of the defunct exchanges allege that both blockchain firms failed to deliver the digital assets despite receiving substantial payments as investments. The lawsuits are part of a broader legal strategy to claw back funds and repay creditors impacted by its bankruptcy.
HAEDALUSDT now launched for futures trading and trading bots
Trending news
MoreCrypto prices
More
