U.S. Senator Lummis Proposes Bitcoin Reserve Strategy to Tackle National Debt – Coincu

U.S. Senator Cynthia Lummis from Wyoming proposed the “Bitcoin Reserve Strategy Bill” on April 20th, 2025, aiming to use Bitcoin as a national reserve asset. This proposal suggests buying Bitcoin akin to gold certificates in 1974.

Lummis’s proposal could halve the national debt over 20 years without using taxpayers’ money. It reflects a strategic shift in asset accumulation by introducing Bitcoin as a core reserve.

U.S. Government Aims to Acquire $20 Billion in Bitcoin

Cynthia Lummis’s proposal centers on making Bitcoin a reserve asset, with the U.S. government potentially acquiring $20 billion worth in the first year. Lummis highlights Bitcoin’s comparability to gold due to its scarcity and decentralization, positioning it as a “digital gold”. This proposal aims to create significant market implications by locking up 5% of Bitcoin’s total supply. Market sentiment remains watchful as Lummis’s and state-level initiatives gain attention. Texas has already passed a bill, potentially setting precedence (Texas leads U.S. in allocating public funds to cryptocurrency).

Lummis’s proposal could transform Bitcoin held by government entities, marking an institutional adoption milestone. “Bitcoin has proven itself,” noted Texas Senator Charles Schwertner, affirming its volatility resilience.

“I know people who felt that it was best to take the most immutable, the most decentralized, the most scarce asset and treat it differently than some of the assets that don’t have those same assets of digital gold that Bitcoin has … as far as a strategic reserve goes, limit it to Bitcoin … that’s the right conclusion,” said Cynthia Lummis, U.S. Senator.

Bitcoin Price Surges to $85,162.90 Amid Reserve Discussions

Did you know? In 1974, the U.S. government’s accumulation of gold certificates significantly influenced national reserves. This historical precedent mirrors current Bitcoin reserve strategies advocated by Senator Lummis.

Bitcoin, under the U.S. reserve proposal, sees a price at $85,162.90, a market cap of $1.69 trillion, and a 62.82% dominance as of April 20, 2025, according to CoinMarketCap. The 24-hour price changed by 0.81% while the 60-day value dropped by 10.57%. The 90-day decrease stands at 15.05%.

The Coincu research team emphasizes that government strategies adopting Bitcoin as a reserve could create ripple effects on its liquidity and global perception. Integrating Bitcoin in U.S. reserves highlights evolving financial and regulatory landscapes, impacting future technological adoptions.