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- Bitcoin is seen by Senator Lummis as key to cutting U.S. $37T debt and curbing inflation long-term.
- The BITCOIN Act of 2025 plans yearly 200,000 BTC buys to halve national debt within two decades.
- Despite volatility, Lummis believes Bitcoin can boost U.S. fiscal strength and long-term stability.
U.S. Senator Cynthia Lummis argues that Bitcoin will be the answer for America in cutting down its staggering national debt of about $37 trillion. She is convinced that a Strategic Bitcoin Reserve will make the U.S. economy stronger as well as cushion against inflation and ultimately regain financial stability in the long run.
In an X post, Lummis wrote, I think the Strategic Bitcoin Reserve is the sole answer to counterbalance our national debt. She commended President Donald Trump and his administration because of their support of the plan. Her statements brought in a revival of the discussion in Washington on the role of Bitcoin in federal fiscal policy.
U.S. Exploring Strategic Bitcoin Reserve to Strengthen Economic Stability
Lummis in an interview with Bloomberg Television in which she explained the rising interest of Bitcoin-backed reserves. She stated that there were no immediate plans when asked whether she would convert U.S. gold holdings into Bitcoin.
Nonetheless, she affirmed that the administration was looking into additional options of possessing a strategic Bitcoin reserve. She has also noted that the increase in value of Bitcoin would offset the growing debt burden in the country.
Lummis has been a longtime advocate of regulation of Bitcoin in Congress. She refers to Bitcoin as digital gold and sees it as an inflation and government overspending hedge. The senator says that the limited supply of Bitcoin and lack of control by central banks make the currency a secure asset forfuture generations.
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BITCOIN Act 2025 Targets U.S. Debt Reduction
The BITCOIN Act of 2025 was presented by Lummis and Congressman Nick Begich earlier this year. The bill suggests the construction of a national Bitcoin bank by organized purchases every year. It recommends purchasing 200,000 BTC annually over five years and retaining the resources over 20 years. According to Lummis, this plan would reduce the national debt by half in a 20-year period.
The proposal has attracted attention after the U.S. government was reported to already possess about $14 billion worth of acquired BTC. These were allegedly obtained out of a Chinese-Cambodian online scam business. There are other countries, such as Brazil, Sweden, and the Philippines, that are currently contemplating acts of national Bitcoin policies.
BTC performance in the market has, however, been fluctuating. The cryptocurrency is trading at approximately $101,650, which dropped by about 10.16% this week, as per CoinMarketCap. It briefly dropped to under 100,000 following a sudden two-day drop. According to analysts, upside momentum is being kept at a minimum at the resistance around $103,000.
Nevertheless, Lummis is still confident that BTC has a viable future leading to fiscal reform. Her latest work highlights a changing attitude of lawmakers in the U.S., which now views BTC not just as a speculative currency but as a possible economic tool to make the country more resilient.
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