BITCOIN Act of 2025
BITCOIN Act of 2025
Plain Language Summary
# BITCOIN Act of 2025 Summary **What It Would Do:** The BITCOIN Act of 2025 would require the U.S. government to purchase one million Bitcoins over five years and store them in a new "Strategic Bitcoin Reserve" managed by the Treasury Department. The government would accumulate these digital assets through purchases, seized cryptocurrency, and donations. Once acquired, the Bitcoins must be held for at least 20 years. After that period, the Treasury could recommend selling some holdings to help pay down the national debt. **Who It Affects:** This legislation would primarily affect U.S.
taxpayers (who would fund the Bitcoin purchases), the Treasury Department (which would manage the reserve), and the broader cryptocurrency market (since large-scale government purchases could influence Bitcoin's value and legitimacy). It doesn't directly impact most Americans' daily lives but represents a significant shift in how the federal government treats digital assets. **Current Status:** The bill is currently in committee (S. 954, 119th Congress), meaning it has been introduced but has not yet advanced to a floor vote. It was sponsored by Senator Cynthia Lummis (R-WY) and remains in early legislative stages.
CRS Official Summary
Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025 or the BITCOIN Act of 2025This bill provides for the acquisition and storage of the cryptocurrency Bitcoin by the U.S. government.The Department of the Treasury must purchase one million Bitcoins over a five-year period and hold the Bitcoins in trust for the United States. The bill also allows for additional acquisitions through specified transfers, forfeitures, and gifts. All Bitcoins acquired by the United States and placed into the Strategic Bitcoin Reserve must be held for at least 20 years. At the end of this period and upon the recommendation of Treasury, a percentage of the holdings may be sold to reduce the national debt. The bill also establishes exceptions to this holding period for specified Bitcoin asset distributions and splits.The bill directs Treasury to establish a Strategic Bitcoin Reserve for the secure storage of U.S. Bitcoins. The reserve must be a decentralized network of secure facilities across the United States. Existing U.S. Bitcoin holdings must be transferred to the reserve. States may voluntarily store Bitcoin holdings in the reserve in segregated accounts.The bill also reduces the total amount of U.S. dollars Federal Reserve banks may hold in surplus and requires Federal Reserve banks to remit a certain amount of net earnings annually to the purchase of Bitcoins.The bill also allows the use of Treasury’s Exchange Stabilization Fund to carry out purchases made under this bill.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.