In summary
- Cynthia Lummis, known as the “Bitcoin Senator,” noted that 2025 will be crucial for the crypto industry, with key policies under the Trump administration.
- Donald Trump named David Sacks as “Cryptocurrency Czar,” promising to make the US the “cryptocurrency capital.”
- Lummis is pushing the “Bitcoin Act,” which proposes a Strategic Bitcoin Reserve with 1 million BTC accumulated over five years, funded without creating additional debt.
Wyoming Senator Cynthia Lummis, known as the “Bitcoin Senator,” has identified 2025 as a pivotal year for Bitcoin and cryptocurrencies, with several proposed policies and key government positions expected to converge and drive change.
“With David Sacks as Crypto Czar, this will be the most pro-digital asset administration in history,” Lummis wrote on X. “I look forward to working closely with (Sacks) to pass comprehensive digital asset legislation and my strategic stockpile.” of bitcoin”.
Earlier this month, Donald Trump appointed venture capitalist Sacks to oversee AI and cryptocurrency policy initiatives next year.
The president-elect has promised to protect domestic cryptocurrency Mining interests, tighten regulation and make the US the “cryptocurrency capital” of the world.
On the last two points, Sacks “will work within a legal framework so that the crypto ecosystem has the clarity it has been asking for and can thrive in the US,” Trump said on December 6.
Lummis’ enthusiasm follows a reshuffle of key government officials, including a new SEC chairman, as Trump prepares to return to the White House for a second presidential term.
The central element of the Senator’s vision is the Law to Promote Innovation, Technology and Competitiveness through Optimized Investment at the National Level, also known as the “Bitcoin Law.”
The legislation proposes the creation of a Strategic Bitcoin Reserve, which it described as “a network of secure storage vaults, purchasing program and other programs to ensure the transparent management of the federal government’s Bitcoin holdings.”
The initiative seeks to accumulate 1 million Bitcoin—5% of the total supply—over five years. The reserve would be funded by reallocating existing Fed assets, such as bonds and gold, rather than creating additional debt.
“This Bitcoin Act is going to be transformative for this country,” Lummis said during his speech at the Bitcoin conference in Nashville four months ago. “With a strategic reserve of Bitcoin, we will have an asset that, before 2045, can reduce our debt by half.”
The Act also establishes a 20-year retention period for these assets, focusing on a long-term commitment to the asset.
According to data from Arkham Intelligence, the US government already maintains substantial reserves of Bitcoin, estimated at $21 billion, primarily seized through criminal cases. If approved, the Bitcoin Law could integrate these holdings into the strategic reserve.
The federal push mirrors the push at the state level. Ohio Representative Derek Merrin introduced a bill on Tuesday that would allow the state treasury to invest public funds in Bitcoin.
The Pennsylvania legislation, introduced by Representative Mike Cabell, seeks to allocate up to 10% of the state treasury reserves to Bitcoin as a hedge against inflation.
Meanwhile, Texas has proposed funding its reserve through donations and authorizing Bitcoin payments for taxes and fees.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
