Senator Lummis says Bitcoin reserve is the only solution to the U.S. national debt
Senator Cynthia Lummis advocates for a Strategic Bitcoin Reserve (SBR) to address America's $37 trillion national debt, positioning Bitcoin as a hedge against inflation and a tool for fiscal stability. She dismissed converting U.S. gold reserves into Bitcoin but confirmed the Trump administration's exploration of other approaches to establish the SBR. Lummis co-introduced the BITCOIN Act of 2025, proposing the government acquire 200,000 BTC annually over five years as a long-term strategy. Reports suggest the U.S. may already hold $14 billion worth of Bitcoin, allegedly recovered from scams. Other nations like Brazil and Sweden are exploring similar initiatives. Despite short-term price struggles, Bitcoin continues to gain political momentum as a cornerstone of economic policy.
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Senator Cynthia Lummis advocates for a Strategic Bitcoin Reserve
Senator Cynthia Lummis has identified Bitcoin as a potential solution to tackle America’s growing $37 trillion national debt. She emphasized the importance of establishing a Strategic Bitcoin Reserve (SBR), which she believes could counterbalance the national debt and act as a long-term hedge against inflation. According to Lummis, this approach ensures fiscal stability and leverages Bitcoin's growth potential.
Trump administration exploring Bitcoin strategies
Reports indicate that the Trump administration is exploring alternatives to create the Strategic Bitcoin Reserve, though there is no move to convert U.S. gold reserves into Bitcoin. In a Bloomberg Television interview, Lummis discussed federal interest in BTC-backed reserves and reiterated that Bitcoin is a growing asset capable of addressing rising debt. She commented, “I truly believe the Strategic Bitcoin Reserve is the only solution to offset our national debt.”
The BITCOIN Act of 2025 and its proposals
Earlier this year, Senator Lummis and Congressman Nick Begich introduced the BITCOIN Act of 2025, proposing a comprehensive national cryptocurrency strategy. The act includes provisions such as the annual purchase of 200,000 BTC for five years, with the assets held for two decades. Lummis suggested that acquiring 1 million Bitcoin (around 5% of the future supply) could potentially reduce the U.S. national debt by half within 20 years.
Rumored U.S. Bitcoin holdings and international trends
Speculation suggests that the U.S. government may already hold $14 billion worth of Bitcoin, allegedly seized from online scam operations involving China and Cambodia. Globally, other countries like Brazil, the Philippines, and Sweden are also considering similar reserves to capitalize on Bitcoin’s potential. The Central Bank of Brazil, for instance, is advancing its plans to build a Bitcoin reserve.
Bitcoin’s market struggles and growing political support
Despite its long-term adoption potential, Bitcoin has faced short-term price challenges. Currently trading at $101,535, Bitcoin has dropped nearly 10% this week following a sharp two-day decline. Resistance around $102,000 continues to limit recovery. However, Lummis’ remarks highlight the rising political momentum behind Bitcoin, framing it as not just a speculative investment but a vital tool for national economic stability.