BITCOIN Act aims to combat debt with strategic reserve

U.S. Senator Cynthia Lummis (R-WY) is urging Congress to pass the BITCOIN Act, legislation designed to establish a federal strategic Bitcoin (CRYPTO:BTC) reserve to counter rising national debt and protect the dollar’s global standing.

The bill, introduced on March 11, aligns with President Donald Trump’s executive order to create a U.S. Strategic Bitcoin Reserve, framing Bitcoin as a “national imperative” for financial leadership.

“The clock and next block are ticking: Let’s Go!” wrote Lummis, chair of the Senate Banking Subcommittee on Digital Assets, amplifying her advocacy on social media.

She argues the bill would help stabilise debt by authorising federal purchases of up to 1 million BTC over time, funded through diversification of existing Treasury and Federal Reserve assets—not new taxes.

The proposal responds to warnings from Blackrock CEO Larry Fink, who noted in his 2025 Annual Chairman’s Letter that U.S. debt risks eroding trust in the dollar.

Fink highlighted projections that federal interest payments could exceed $952 billion this year, surpassing defense spending, and consume all revenue by 2030.

While Fink supports decentralised finance, he acknowledged Bitcoin’s potential as a reserve alternative if dollar confidence declines.

The BITCOIN Act also mandates the creation of a decentralised network of secure Bitcoin vaults with strict cybersecurity and physical safeguards.

It reaffirms individuals’ rights to self-custody their holdings and prohibits the Federal Reserve from infringing on personal financial freedoms.

Critics have raised questions about the feasibility of large-scale federal Bitcoin purchases, given market volatility and regulatory uncertainties.

However, supporters argue the reserve could bolster U.S. competitiveness amid global shifts toward digital assets.

“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century,” stated Lummis, emphasising that the bill addresses both economic and geopolitical challenges.

At the time of reporting, the Bitcoin (BTC) price was $83,151.62.