"The discussion of a federal Bitcoin reserve has moved from a fringe idea to serious policy debate amid growing debt pressures and Bitcoin's ( ) expanding role in global finance. Advocates say the U.S. needs new tools because old fiscal policies aren't working, while critics remain skeptical that digital assets can deliver significant relief. The proposal sits at the crossroads of economics, politics, and long-term planning. It marks a shift in how governments assess value, reserves, and national security in the digital economy."
"Senator Cynthia Lummis introduced the BITCOIN Act in March 2025 , proposing 200,000 BTC purchases annually. This would give the government 1 million BTC over five years, equaling about 5% of all circulating Bitcoin. That would place the U.S. ahead of every sovereign holder and most private institutions. The funding model draws on three sources: seized Bitcoin already in federal custody, annual Federal Reserve profits, and accounting gains from revaluing gold certificates."
"The Treasury Department would hold the Bitcoin using a secure, multi-signature system spread across federal agencies and offline cold storage facilities. That protects the assets from hacks while allowing Congress and the public to verify holdings through regular audits. Bitcoin entered national policy conversations for three reasons: traditional debt tools are failing, institutional adoption has strengthened Bitcoin's credibility, and history shows governments turn to new assets when old systems fail."
A federal Bitcoin reserve proposal would acquire 200,000 BTC annually to reach one million BTC in five years, about 5% of circulating supply. Funding would come from seized Bitcoin, Federal Reserve profits, and accounting gains from revalued gold certificates, avoiding taxes or new debt. Storage would use multi-signature custody across agencies and offline cold storage with audits for public verification. Proponents cite rising debt pressures, institutional adoption, and historical precedent for shifting reserves to new assets. Critics question whether digital assets can meaningfully relieve fiscal stress and raise national security and valuation concerns.
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