2025 will be the year of Bitcoin

Yesterday, Senator Cynthia Lummis wrote on her official X profile that 2025 will be the year of Bitcoin and digital assets.

She did so by commenting on some photos that show her portrayed together with David Sacks, the Crypto Czar appointed by Trump. 

Lummis and the crypto

Cynthia Lummis is a strong supporter of Bitcoin and the crypto sector, for several years now. 

For example, already four years ago he wrote on his personal profile that he was enthusiastic about Bitcoin.

At the time, a BTC had a price of about $15,000, and the latest major bull run had just started, which ended a year later.

Tuttavia, Lummis not only supports Bitcoin, but the entire crypto sector. 

In fact, it is his the first bill, proposed in 2021, which aimed to regulate the crypto sector in the USA.

The struggle with the democratici

However, that bill has never yet been approved, over three years later. 

Lummis is a Republican senator, and although she drafted the bill together with some Democratic senators, the Democratic majority has always opposed its approval. 

The 2020 presidential elections were won by the Democrat Joe Biden, starting a four-year period of Democratic presidency that in the end turned out to be more hostile than favorable towards criptovalute.

To tell the truth, in 2021 things seemed to be going relatively well even from this point of view, but with the collapse of FTX at the end of 2022, the situation changed.

It was discovered that the founder of FTX, Sam Bankman-Fried, later convicted of fraud, had financed many Democratic politicians with millions of dollars from the funds of his exchange’s users. 

At that point, many Democrats began to distance themselves from the crypto sector, and subsequently, Gary Gensler’s SEC crusade against this sector began. Gensler, who announced his resignation after Trump’s victory in November, had been appointed as head of the SEC by Biden and should be considered a president from the Democratic area. 

With Trump’s victory, the crypto sector’s fight against Biden’s democratic administration has ended. 

The next steps of Lummis in the crypto world

Senator Cynthia Lummis might have a role during the new Trump administration that will take office on January 20, particularly concerning the crypto sector. 

For now, he has not yet received any specific assignment, but the tweet with his photos together with Sacks suggests that he will work behind the scenes. 

On the other hand, she is the author of the only bill still present in Congress to regulate the crypto sector, and it is likely that the work of the new Congress on the crypto topic will start again from there. 

In fact, Lummis herself stated that she will work closely with Sacks to achieve the approval of comprehensive legislation on digital assets and the strategic reserve in Bitcoin.

He also added that the next will be the most favorable US administration ever for digital assets. 

The strategic reserve in Bitcoin

During the election campaign, Donald Trump promised to establish a strategic reserve in Bitcoin in the USA. 

On the other hand, the U.S. government, through the Department of Justice, already holds almost 200,000 BTC, with a value of about 20 billion dollars. These are BTC that have not been purchased but come from judicial seizures of funds derived from crimes. 

The idea of Trump, absolutely feasible, would be not to sell those Bitcoin, as usually happens, but to keep them indefinitely in the State’s coffers as a strategic reserve. 

Lummis, however, has proposed to go further. 

In fact, he would like to propose to Congress a plan to accumulate another 200,000 BTC per year for the four-year term of Donald Trump, with the goal of having the US government hold one million Bitcoin. 

It should be remembered that there are less than 20 million BTC in circulation, and they can never exceed 21 million. In fact, to be precise, excluding those that are actually only theoretically in circulation, because in reality they are no longer usable as the private keys of the wallets in which they are stored have been lost, it is possible to imagine that the concrete maximum limit is not higher than 18 million, and it is probably even lower. 

Therefore, Lummis in fact proposes that more than one twentieth (5%) of all existing BTC be held by the USA. 

The idea, however, is not to use taxpayer funds to purchase 200,000 BTC per year for three years, so it is not so easy to implement. Instead, the establishment of a strategic reserve in Bitcoin with the BTC already held by the Department of Justice appears much more feasible.