Senator Lummis said on March 11, “I am proud to reintroduce this important legislation that will build on President Trump’s bold vision to create a U.S. strategic bitcoin reserve and strengthen our nation’s economic foundation for generations to come.”

The bill, known as the “Fostering Innovation, Technology, and Competitiveness Through Optimized Investments Across the Nation Act,” or simply the “Bitcoin Act,” was originally proposed in July 2024. However, due to the new legislative deadline, it had to be reintroduced.

The bill is co-sponsored by several Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

Bill Key Provisions

A key aspect of the bill is the creation of a nationwide strategic bitcoin reserve. This involves the formation of a network of secure vaults that would be managed by the U.S. Treasury Department. The bill also includes a program to purchase 1 million BTC, which is approximately 5% of the total supply of bitcoin.

The bitcoin purchase program would allow the purchase of 200,000 BTC annually for five years, with a mandatory minimum holding period of 20 years. The initiative would be funded by diversifying existing funds at the Federal Reserve and the Treasury. The bill would also reaffirm the rights of private bitcoin holders to self-custody.

“Bitcoin is not just a technological opportunity, it is a national imperative to continue America’s financial leadership in the 21st century,” Lummis said.

Financial Considerations

The bill would also reduce the Federal Reserve’s discretionary excess funds from $6.8 billion to $2.4 billion. It would also redirect $6 billion from the Federal Reserve’s cash transfers to the Treasury over the next four years.

This bill is aimed not only at strengthening the economic stability of the United States, but also at ensuring the country's leading position in the field of financial technology and innovation.

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