U.S. Senator Lummis Advocates for Strategic Bitcoin Reserve: A Game-Changer for U.S. Economic Policy

Senator Lummis Endorses Creation of Strategic Bitcoin Reserve

Cynthia Lummis, a Republican Senator and vocal advocate of Bitcoin adoption, has indicated that the United States government is equipped to launch a Strategic Bitcoin Reserve (SBR) at any moment. Speaking on X (formerly Twitter) on October 7, Lummis stated, “Legislation is slow, but thanks to President Trump, SBR funding is now ready to begin anytime.” Her remarks were in response to a discussion initiated by Jeff Park of ProCapBTC and prominent Bitcoin advocate Anthony Pompliano about leveraging the nation's gold profits to invest in Bitcoin.

This ambitious proposal draws its legal framework from an executive order signed during the Trump administration, granting the U.S. Treasury authority to create Bitcoin-backed reserves without requiring new legislation to move forward.

How the Executive Order Enables a Bitcoin Reserve Initiative

The executive order, issued in March under President Trump’s leadership, empowers the Treasury to establish an SBR using existing Bitcoin holdings, largely acquired through asset seizures in criminal cases like Silk Road. Unlike conventional government spending programs, the initiative does not impose any tax burdens on American citizens, according to Lummis.

She underscored that the Strategic Bitcoin Reserve would classify Bitcoin as an equivalent treasury asset alongside gold and other financial reserves. “This initiative isn’t just about strengthening our reserves—it’s about preparing the U.S. for a digital-first global economy,” Lummis stated. She pointed to countries like El Salvador, which has incorporated Bitcoin into its financial reserves, as examples of proactive strategies to ensure monetary sovereignty.

The proposal signals a fundamental shift in U.S. financial policy, elevating Bitcoin as a strategic asset. Lummis called this measure a vital step for reinforcing the nation’s position in the increasingly digital global economic landscape.

Bitcoin Purchases and Growth Projections

Investor Jeff Park has proposed utilizing unrealized gains from the U.S. government's gold reserves—estimated to be worth $1 trillion—to acquire Bitcoin without incurring debt or requiring additional taxes from citizens. Park outlined a scenario in which Bitcoin could potentially grow at an annual rate of 12%, leading to a thirtyfold increase in value over 30 years.

Senator Lummis praised Park’s hypothesis, calling it a “perfect explanation of why the U.S. needs to move forward with the Bitcoin legislation and establish the SBR.” She emphasized her full backing of the proposed strategy, which could pave the way for integrating Bitcoin into broader federal financial planning.

Market analysts interpreted Lummis' remarks and other Bitcoin-related activity as signals that the U.S. government may already be exploring direct Bitcoin purchases. Anthony Pompliano weighed in by saying, “Creating the reserve is only the beginning—true transformation comes when the government starts buying Bitcoin from the open market directly.”

U.S. Bitcoin Holdings and Reserve Management Potential

The U.S. currently owns approximately 198,000 Bitcoin, worth an estimated $24 billion, according to on-chain analytics firm Arkham Intelligence. These holdings stem predominantly from cryptocurrency asset seizures carried out during high-profile legal cases.

Alex Thorn, Head of Research at Galaxy Digital, emphasized the significance of the reserve proposal as a transformative policy tool. Thorn said, “Rather than auctioning off seized Bitcoin assets, incorporating them into Treasury holdings would represent a major shift.” He added that the Strategic Bitcoin Reserve could feasibly reach full operational status by the end of 2025.

Strategic Implications for a Digitized Global Economy

The establishment of an SBR aligns with broader efforts to position the U.S. for an economic landscape increasingly dominated by digital currencies. By formally managing its Bitcoin reserves and exploring new acquisitions, the government could lay the foundation for cryptocurrency to play a pivotal role as a sovereign asset.

This move signifies a forward-thinking approach to navigating shifting global financial dynamics, allowing the United States to safeguard its monetary sovereignty while embracing innovation in digital asset management. The Strategic Bitcoin Reserve, if implemented, could redefine how the U.S. leverages emerging technologies to strengthen its economic resilience and global competitiveness.