Plan Targets Major Bitcoin Purchase Over Five Years
United States President Donald Trump is backing a new move to make Bitcoin a central part of the country’s financial future. Wyoming Senator Cynthia Lummis revealed that a proposal is underway to allow the federal government to acquire up to one million Bitcoin gradually across a five-year period.
The bill, known as the BITCOIN Act, was reintroduced by Lummis earlier this year. It lays out how the government could begin building a strategic Bitcoin reserve without increasing the national debt or placing pressure on taxpayers. Instead of raising new funds, the plan would rely on existing financial resources managed by the Treasury and the Federal Reserve.
Speaking at a Bitcoin conference held in Las Vegas, Lummis stated that a team within the Trump administration is already working on a broader set of digital asset policies. The rollout is expected to begin with legislation focused on stablecoins, followed by new rules for how crypto markets are regulated, and finally the creation of the reserve itself.
Image 1: President Donald Trump (Source: Straight Arrow News)
Stablecoin Law Expected to Pass Soon
Alongside the Bitcoin plan, the administration is also pushing for the approval of a separate bill called the GENIUS Act, which sets out to regulate stablecoins. These are digital currencies that mirror the value of the U.S. dollar and are commonly used across the crypto world.
David Sacks, who leads digital asset strategy for the White House, expressed confidence that the stablecoin legislation will receive bipartisan backing. He expects the bill to move through the Senate soon, especially after passing a key vote earlier this month.
Stablecoins have become a major force in the digital economy, with dollar-backed tokens like USDT and USDC making up more than 85% of the $250 billion market.
Experts Propose Gradual and Creative Approaches
While President Trump signed an executive order in March to formally establish a national Bitcoin reserve, financial experts say long-term success will require support from Congress. Matthew Sigel, head of digital assets at investment firm VanEck, told the Las Vegas conference that acquiring Bitcoin through laws passed by Parliament would be more stable than relying on presidential orders alone.
Sigel explained that large-scale executive action could face legal challenges, especially when large sums are involved. Instead, he recommended a gradual method, such as offering tax breaks to Bitcoin miners who use clean energy and agree to provide part of their mined coins to the government.
Another idea discussed involves tapping into existing financial tools. For instance, the Treasury could begin by setting aside $100 million from the Exchange Stabilisation Fund, a pool of funds used to manage economic risks, to make small initial purchases of Bitcoin.
Image 2: Senator Lummis (Source: CoinMarketCap)
Revaluing Gold Reserves to Fund Bitcoin Purchases
Senator Lummis and other officials have also suggested a different strategy that involves rethinking how the United States values its gold reserves. The Treasury holds large amounts of gold, but it’s still listed at a price of just over US$42 per ounce—far below current market rates. Gold recently peaked at over US$3,500 before easing to around US$3,300.
Bo Hines, who leads the President’s advisory council on digital assets, supported the idea of revaluing the government’s gold holdings. He argued that the difference between the book value and the market value could be used to fund Bitcoin purchases without needing fresh capital.
This would offer a practical, budget-neutral option to help grow the reserve.
As discussions continue in Washington, it’s becoming clear that Bitcoin is no longer viewed as a fringe issue. With the President’s support, lawmakers and financial leaders are working to bring digital assets into the heart of national economic planning.
Also Read: Australia Senator Calls Bitcoin a Ponzi, Says ‘You Can’t Eat It
Senator Lummis has been one of the leading voices in this shift. She sees the BITCOIN Act as part of a broader effort to prepare the U.S. for the future of money. If passed, the legislation would mark a turning point in how the country approaches digital currencies—not just as investments, but as long-term strategic assets.
