Senator Lummis Proposes BITCOIN Act to Fund Strategic BTC Reserve Through Gold Revaluation
U.S. Senator Cynthia Lummis has outlined a bold proposal to address America’s mounting national debt and strengthen its position in the global financial system—by creating a Strategic Bitcoin Reserve. While dismissing the idea that simply buying more Bitcoin could solve the country’s $37 trillion debt crisis, Lummis suggested that revaluing the nation’s gold reserves to current market prices could provide the necessary capital to build a substantial BTC reserve.
According to the Senator, the unrealized gains from a gold revaluation could be transferred into a dedicated fund for purchasing Bitcoin. This would form the basis of what she calls the BITCOIN Act, a legislative initiative aimed at integrating Bitcoin into America’s strategic assets.
A Different Approach to National Debt and Strategic Assets
Lummis emphasized that directly tackling the national debt with Bitcoin purchases is unrealistic, given the scale of the financial challenge. However, she argued that gold—long considered a cornerstone of the U.S. reserve strategy—has appreciated significantly since its last official valuation. Updating that valuation to reflect today’s prices would unlock substantial resources without new borrowing or tax increases.
Under the proposed framework, the increase in gold’s book value would be allocated toward acquiring and holding Bitcoin as a reserve asset, effectively modernizing the country’s reserve portfolio. Lummis views Bitcoin as a long-term hedge against monetary instability, comparable to gold but with the added benefits of portability and verifiable scarcity.
Why Bitcoin, and Why Now?
The Senator’s proposal comes at a time of heightened debate over the role of digital assets in national and global finance. Bitcoin, with its fixed supply of 21 million coins, is increasingly seen as a store of value that could protect against inflationary pressures and currency devaluation.
For Lummis, adding Bitcoin to U.S. reserves is not about replacing gold but complementing it. “America needs the BITCOIN Act,” she stated, positioning the move as both a hedge and a strategic play to ensure the United States remains competitive in the evolving digital economy.
While the BITCOIN Act has yet to be formally introduced in Congress, the idea could spark significant political and economic debate. Proponents may argue it’s a forward-thinking way to leverage existing assets for long-term financial resilience, while critics could question the volatility and regulatory risks associated with Bitcoin holdings.
If passed, the initiative would mark a historic milestone—making the United States one of the first major economies to explicitly incorporate Bitcoin into its strategic reserves alongside gold. The proposal also reflects a growing recognition in Washington that digital assets are likely to play an increasingly important role in future financial policy and national strategy.
