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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Senator Cynthia Lummis says a Strategic Bitcoin Reserve can help address the growth of the US debt, calling it the only path that significantly offsets the burden.
She praised President Trump and his team for embracing the idea and said she is eager to see it across the finish line.
In remarks this week, Lummis said she believes the reserve will grow in value over time and act as a balance sheet counterbalance.
He added that the administration is considering structures beyond revaluing gold certificates and exchanging them for Bitcoin, noting that the Treasury and the White House are reviewing the options.
Official Review Alternatives to Gold Revaluation for Bitcoin Reserve Setup: Lummis
In a recent Bloomberg interviewLummis said officials are exploring ways to establish a reserve without relying solely on gold revaluation.
She said Treasury Secretary Scott Bessent and White House staff are working on those details and that she welcomes their support for a strategic reserve built around Bitcoin.
The senator signaled the urgency. Last month, he said the purchase frame for a reserve could start at any time and he credited President Trump for creating the conditions to move quickly. She described the legislative process as slow, but said the funding mechanism should not wait.
No new expenses planned as Bitcoin Reserve to remove from seized assets
Questions remain about funding. Lummis did not outline a comprehensive plan for how the government would capitalize on the reserve. However, the March sheet of the administration said that the reserve begins with Bitcoin is already controlled by the Treasury through criminal or civil confessions.
Since then it has grown a lot. After the record confiscation of nearly 130,000 BTC related to criminal cases, US Bitcoin reserves have climbed to over $34b at current prices, giving the government one of the largest known sovereign holdings in the world.
The fact sheet also said that additional Bitcoin could be added through budget-neutral strategies that avoid new taxpayer costs. That approach aligns with Treasury guidance in August, when Secretary Bessent said the government would not purchase Bitcoin directly for the reserve and would instead rely on confiscated assets as the initial store of value.
Lummis endorsed this view at the timecalling a budget-neutral path the right way forward. She also suggested that revaluing the nation’s gold holdings at current market prices and transferring the increase could help build the reserve.
Political Momentum Builds as Washington Weighs Bitcoin’s Role in National Strategy
Momentum has been building in political circles since March, when President Trump signed an executive order to establish the reserve. The directive has sparked speculation that government wallets could start hoarding Bitcoin more visibly in the coming months.
Market strategists see a political arc forming. Galaxy Digital head of research Alex Thorn said that The United States could formalize the reserve framework before the end of 2025which indicates broader bipartisan recognition of Bitcoin as a store of value and a financial asset.
Supporters argue that a reserve could diversify sovereign assets and provide an inflation-resistant buffer. Critics want clearer guardrails, including custody, transparency and rules for drawdowns, before any large-scale accumulation.
