Senator Lummis Reintroduces Bitcoin Act for One Million BTC Purchase

• The bill requires the Treasury to acquire one million Bitcoins in five years and retain them for 20 years to secure assets.
• The legislation establishes a Strategic Bitcoin Reserve by transferring existing Bitcoin holdings and creating a secure, decentralized network throughout the United States.
• Federal Reserve adjustments support the purchase program by allocating remittances for Bitcoin acquisitions from 2025 to 2029, ensuring funding for the initiative.

Senator Lummis has reintroduced the Bitcoin Act, a legislative proposal requiring the U.S. government to purchase one million Bitcoins over five years. The bill mandates a minimum 20-year holding period and sets procedures for digital asset storage.

Bill Overview and Treasury Responsibilities

Under the bill, the Treasury must purchase one million Bitcoins in five years. The Treasury will hold these Bitcoins in trust for the United States. All acquired Bitcoins must be held for at least 20 years. The law requires holding unless used to reduce outstanding federal debt.

Legislation specifies a timeline for Bitcoin acquisitions. The Treasury must complete purchases within five years. The legislative text specifies requirements for audit and reporting. The Treasury will provide periodic updates on Bitcoin acquisition progress.

Strategic Bitcoin Reserve and Storage Guidelines

The bill directs the Treasury to create a Strategic Bitcoin Reserve. The Reserve will consist of a network of secure facilities across the country. Existing government Bitcoin holdings will transfer to the Reserve. States may store their Bitcoin in segregated accounts within the Reserve.

The Reserve requires strict security measures. Facilities must meet defined standards for digital asset protection. Guidelines require regular security audits for Reserve facilities. The Reserve will follow federal protocols for digital asset management.

Federal Reserve Adjustments and Cost Offset Measures

The bill reduces the surplus held by Federal Reserve banks. It mandates annual remittances from Federal Reserve net earnings to fund Bitcoin purchases. During 2025 to 2029, the first $6 billion of remittances will support the Bitcoin Purchase Program. The measure provides a mechanism for cost offsets during the acquisition period.

The bill outlines adjustments to surplus holdings at Federal Reserve banks. These measures affect annual remittances to the Treasury. Federal Reserve adjustments are part of a broader fiscal strategy. Remittances will be monitored for accuracy and consistency.

Senator Lummis reintroduced the Bitcoin Act to set guidelines for government Bitcoin acquisitions. The bill defines Treasury responsibilities, storage protocols, and Federal Reserve adjustments. Lawmakers expect adherence to the bill to support national digital asset management. The bill provides detailed steps for secure Bitcoin storage and fiscal adjustments.