Senator Lummis Confirms Strategic Bitcoin Reserve Funding Ready to Begin
Senator Cynthia Lummis confirmed that funding for the US Strategic Bitcoin Reserve can begin immediately. According to Cointelegraph, the Wyoming Republican stated on Monday that President Trump enabled fund acquisition to start anytime. However, legislative processes continue to delay the actual launch.
Lummis made her comments on X in response to ProCap BTC chief investment officer Jeff Park. Park discussed using $1 trillion in paper gains from gold holdings to invest in Bitcoin. The senator called this approach a compelling argument for passing the BITCOIN Act. She described it as excellent reasoning for establishing the reserve program.
The US government currently holds approximately 198,000 Bitcoin from criminal and civil asset seizures. Trump signed an executive order in March 2025 establishing the Strategic Bitcoin Reserve. The order consolidates seized Bitcoin under Treasury Department control. Initial capitalization uses assets already owned by federal agencies through legal forfeitures.
State-Level Momentum Reinforces Federal Reserve Plans
The Strategic Bitcoin Reserve represents a major shift in US cryptocurrency policy. Lummis introduced the BITCOIN Act legislation in March 2025 alongside five co-sponsors. The bill proposes purchasing 1 million Bitcoin over five years using budget-neutral funding methods. This would give the US approximately 5% of Bitcoin's total supply.
We reported in February that fifteen US states began pursuing their own Bitcoin reserve legislation. Pennsylvania led the movement by introducing the first state bill in November 2024. States including Texas, Wyoming, and Arizona have since advanced similar measures. This parallel state activity demonstrates growing political support for government Bitcoin holdings.
The federal reserve concept addresses concerns about previous Bitcoin sales that cost taxpayers over $17 billion. Anthony Pompliano told CNBC he expects the government to announce Bitcoin purchases soon. He considers actual buying activity the "main dish" rather than simply consolidating existing holdings. Market participants are watching closely for this key announcement.
Global Competition Drives Urgency for Reserve Implementation
The Bitcoin reserve initiative reflects broader competition among nations seeking cryptocurrency leadership. According to Cointelegraph, Bitcoin reserve and stablecoin policy developments have become primary drivers of the 2025 market cycle. These policy shifts could push Bitcoin above $150,000 under favorable economic conditions.
Several countries are exploring similar reserve strategies following the US announcement. The Czech National Bank disclosed plans to study Bitcoin allocations for its reserves in January 2025. Kyrgyzstan advanced legislation in August to establish a state cryptocurrency reserve. Pakistan officials met with Bitcoin advocates to discuss economic growth potential from such programs.
The competitive dynamics create urgency for US implementation to maintain first-mover advantage. Bitcoin's fixed supply of 21 million coins means early government accumulation provides strategic positioning. Large-scale sovereign purchases could drive prices substantially higher through increased demand. However, critics question whether Bitcoin's volatility makes it suitable for government reserves.
The reserve faces both political support and skepticism in Congress. Some lawmakers argue it provides no clear benefit to taxpayers given cryptocurrency market risks. Others view it as necessary for maintaining US competitiveness in digital finance. The administration must balance these competing perspectives while developing specific operational details. The coming months will determine whether legislative support materializes for active Bitcoin acquisition programs.
