US Senator Cynthia Lummis Resubmits the BITCOIN Act, Attempting to Establish a Strategic Bitcoin Reserve

In March 2025, U.S. Senator Cynthia Lummis resubmitted the BITCOIN Act to the Senate, attempting to establish a strategic Bitcoin reserve through legislation.

In March 2025, U.S. Senator Cynthia Lummis resubmitted the BITCOIN Act to the Senate, aiming to establish a strategic Bitcoin reserve through legislation. This move continued her original intention in 2024 and made key adjustments in details, sparking widespread discussion and market debate.

This article will deeply interpret the historical background of the bill, the changes in the new version, and the profound impact that the plan to purchase 200,000 bitcoins per year may have on the price of Bitcoin.

History of the Act, what changes have been made in the new version

As a Republican senator from Wyoming, Cynthia Loomis has been an active promoter in the field of Bitcoin policy since 2024. In July of that year, she first proposed the BITCOIN Act of 2024, which aims to establish a “Strategic Bitcoin Reserve” similar to the Strategic Oil Reserve through the government's purchase of Bitcoin. The goal is to use Bitcoin as “digital gold” to enhance the United States' competitive advantage in the global financial system while providing a new solution to the national debt.

The bill proposes to purchase 1 million Bitcoins (1,000,000 BTC) within five years, accounting for about 5% of the total supply of Bitcoin at the time, and to achieve this goal by redirecting funds from the Federal Reserve System's earnings and gold revaluation. However, the 2024 version of the bill was quickly blocked in congressional committees and eventually “expired” at the end of the 2023-2024 session and failed to pass.

In March 2025, Loomis resubmitted the bill, launching the Bitcoin Act of 2025. The new version retains the core goal - to purchase 1 million bitcoins within five years - but makes several key changes in the details. These changes are intended to respond to previous criticisms, strengthen enforcement, and echo the executive order signed by President Trump in March 2025 to establish a strategic Bitcoin reserve.

Here are the main changes in the new version:

* Modifies the annual Bitcoin purchase plan. The 2024 version sets the maximum annual purchase amount at 200,000 Bitcoins, granting the Treasury flexibility to adjust purchases based on market conditions. However, this flexibility may lead to poor implementation or delays. The 2025 version changes this clause to "must" purchase 200,000 Bitcoins, totaling 1 million Bitcoins over five years. This adjustment is made to ensure that lawmakers rapidly establish Bitcoin reserves as planned through legal mandatory requirements.

* Deletes the clause permitting Bitcoin to be sold for federal debt instruments. The 2024 version allows Bitcoin to be sold to repay federal debt instruments within a minimum holding period of 20 years, an exception that provides flexibility to the government but also weakens the commitment to long-term holding of Bitcoin as a strategic asset. The 2025 version deletes this clause and explicitly stipulates that Bitcoin cannot be sold, exchanged, auctioned or disposed of for any purpose within 20 years. This change strengthens Bitcoin's positioning as a “long-term store of value”, consistent with the concept of "digital gold".

* Adds coordination with the Exchange Stabilization Fund (ESF). The 2025 version adds a new coordination clause with the Exchange Stabilization Fund (ESF), permitting the use of this reserve fund (about $39 billion) to support Bitcoin purchases. The ESF is an emergency reserve fund used by the Ministry of Finance to stabilize exchange rates and financial markets, usually used to intervene in the foreign exchange market or support international financial stability. This amendment expands the source of funds and provides additional financial support for Bitcoin purchases.

* Adjusts the use of Federal Reserve gold valuation gains. "Revaluation" of the Federal Reserve gold refers to the revaluation of the gold reserves held by the Treasury (approximately 8,133.5 tons) from the legal price (US$42.2222/ounce) to the current market price (approximately US$2,900/ounce in March 2025). This revaluation will generate a book gain of approximately US$747.3 billion (market value of approximately US$758.3 billion minus book value of US$11 billion). The 2024 version incorporates these proceeds into the general fund, while the 2025 version explicitly uses them for the Bitcoin purchase plan. This adjustment reflects strong support for the strategic reserve of Bitcoin and provides a strong funding basis for the "budget neutrality" of the bill. However, fluctuations in the price of gold (which may rise to $3,500/ounce or fall to $2,500/ounce) may affect the final available amount, requiring further

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