U.S. Republican Senator Cynthia Lummis stated that funding for the U.S. strategic Bitcoin reserve "can be initiated at any time."
On Tuesday, U.S. Republican Senator Cynthia Lummis stated that funding for the U.S. strategic Bitcoin reserve could be initiated at any time, sparking rapid debate in Washington over whether the Treasury should move forward with the plan even before final legislation is passed.
Lummis posted on social platform X: 'The legislative process is long and arduous, but thanks to President Trump, the acquisition of funds for the strategic Bitcoin reserve can begin at any time.' This remark suggests that the Treasury may already possess or will soon gain political support to advance related infrastructure and funding allocations prior to formal legislation.
Under an executive order signed by President Trump in March, the U.S. Treasury currently manages approximately 200,000 Bitcoins, valued at roughly $17 billion at the time, as the foundational asset for the strategic reserve. White House advisor David Sacks stated that the plan is 'budget neutral,' operating through the confiscation of assets rather than taxpayer funds.
The executive order also established two accounts: one is the 'Strategic Bitcoin Reserve,' which holds Bitcoins that cannot be sold; the other is the 'Digital Asset Repository,' used to manage other confiscated crypto assets. Both are under the jurisdiction of the Treasury and operate on a 'zero-cost' basis. Trump called Bitcoin 'an amazing new asset class based on ledgers,' emphasizing that the policy aims to alleviate debt pressures and consolidate America's financial leadership.
According to the House of Representatives' fiscal year 2026 appropriations bill, the Treasury Department is required to submit a research report within 90 days on the custody, security, and accounting systems for a 'strategic Bitcoin reserve,' and to collaborate with the National Security Agency for confidential briefings. The bill also plans to increase the budget for the Office of Terrorism and Financial Intelligence to test AI-based sanctions monitoring systems while prohibiting the Treasury from using allocated funds to design a central bank digital currency. Although the bill does not authorize additional Bitcoin purchases, it marks the first time Bitcoin has been included as a core issue in U.S. fiscal policy.
According to an analysis by legal consultancy Vitallaw, Trump’s executive order effectively transforms the Treasury into a 'digital Fort Knox,' centralizing the management of all federally confiscated Bitcoin assets. It mandates the implementation of multi-signature protocols, cross-agency oversight, and strict key management mechanisms to ensure continuity across successive administrations.
Asset management firm VanEck modeling predicts that if the U.S. accumulates 1 million Bitcoins by 2029, their value by 2049 could offset approximately 18% of the national debt burden—equivalent to around $21 trillion in reserves supporting $116 trillion in debt—assuming an average annual Bitcoin growth rate of 25%. Lummis believes such a reserve system would strengthen the U.S.’s position as a 'financial and technological superpower.'
Cryptocurrency analytics firm BeInCrypto projects that if the bill is passed without mandatory purchases, Bitcoin prices may stabilize within the range of $115,000 to $125,000. However, if it mandates the Treasury to purchase 200,000 Bitcoins annually, prices could be driven up to between $130,000 and $160,000 due to supply constraints. CoinShares argues that sovereign Bitcoin allocation could serve as a tool for inflation hedging and reserve diversification while demonstrating U.S. leadership in the digital finance space.
Blockchain analytics company Chainalysis has warned that simultaneous establishment of sovereign Bitcoin reserves by multiple countries could disrupt market liquidity. Economist David Krause criticized the plan as a "high-risk experiment in financial symbolism," potentially blurring the line between fiscal prudence and speculative behavior.
Editor/Joryn