US Bitcoin Reserve Is ‘Only Solution’ to Offset National Debt: Sen. Cynthia Lummis
Sen. Cynthia Lummis says a Strategic Bitcoin Reserve will help deal with the US’ swelling debt load, calling it the one path that meaningfully offsets the burden.
She praised President Trump and his workforce for embracing the concept and mentioned she is keen to see it by way of to the end line.
In remarks this week, Lummis mentioned she believes the reserve would develop in worth over time and act as a steadiness sheet counterweight.
She added that the administration is contemplating constructions past revaluing gold certificates and swapping them for Bitcoin, noting that the Treasury and the White House are reviewing choices.
Officials Reviewing Alternatives to Gold Revaluation for Bitcoin Reserve Setup: Lummis
In a recent Bloomberg interview, Lummis mentioned officers are exploring methods to set up a reserve with out relying solely on gold revaluation.
She mentioned Treasury Secretary Scott Bessent and White House employees are working by way of these particulars and that she welcomes their assist for a strategic reserve constructed round Bitcoin.
The senator has signaled urgency. Last month, she mentioned the buying framework for a reserve could begin at any time and credited President Trump for creating the circumstances to transfer rapidly. She described the legislative course of as gradual, however mentioned the funding mechanism doesn’t have to wait.
No New Spending Planned as Bitcoin Reserve to Draw From Seized Assets
Questions stay about financing. Lummis has not outlined a complete plan for the way the federal government would capitalize the reserve. However, the administration’s March truth sheet mentioned the reserve would begin with Bitcoin already controlled by the Treasury through criminal or civil forfeitures.
That base has since grown considerably. Following the record-breaking forfeiture of almost 130,000 BTC tied to felony instances, US Bitcoin reserves have climbed to over $34b at present costs, giving the federal government one of many largest identified sovereign holdings globally.
The truth sheet additionally mentioned extra Bitcoin could possibly be added by way of budget-neutral methods that keep away from new taxpayer prices. That method aligns with steering from the Treasury in August, when Secretary Bessent mentioned the federal government wouldn’t buy Bitcoin outright for the reserve and would as an alternative depend on confiscated property because the preliminary retailer of worth.
Lummis endorsed that view at the time, calling a budget-neutral path the fitting approach ahead. She additionally advised that revaluing the nation’s gold holdings to present market costs and transferring the uplift might assist construct the reserve.
Policy Momentum Builds as Washington Weighs Bitcoin’s Role in National Strategy
Momentum has grown in coverage circles since March, when President Trump signed an government order to set up the reserve. The directive sparked hypothesis that authorities wallets might start to accumulate Bitcoin extra visibly within the months forward.
Market strategists see a coverage arc forming. Galaxy Digital’s head of analysis Alex Thorn mentioned the US could formalize the reserve framework before the end of 2025, pointing to broader bipartisan recognition of Bitcoin as each a retailer of worth and a monetary asset.
Supporters argue a reserve might diversify sovereign property and supply an inflation-resilient buffer. Critics will need clearer guardrails, together with custody, transparency and guidelines for drawdowns, earlier than any large-scale accumulation proceeds.
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