In a groundbreaking development at the Bitcoin 2025 conference in Las Vegas, Senator Cynthia Lummis revealed plans for an unprecedented government Bitcoin acquisition initiative, backed by President Trump’s administration. The proposed Bitcoin Act aims to secure 1 million BTC for the U.S. treasury, marking a historic shift in federal crypto policy.
Strategic Bitcoin Reserve Initiative: A Five-Year Plan
The legislation, initially proposed in July 2024, outlines an ambitious strategy to acquire approximately 5% of Bitcoin’s total supply over five years. This move aligns with recent U.S. government crypto initiatives and mirrors the scale of current U.S. gold reserves.
BitBonds: Innovative Funding Mechanism
The Bitcoin Policy Institute’s proposed BitBonds structure represents a novel approach to government Bitcoin acquisition. These specialized Treasury bonds would allocate 90% to traditional operations and 10% to BTC purchases, potentially generating $700 billion in interest savings over ten years.
Current Holdings and Market Impact
According to Fox journalist Eleanor Terret, the U.S. government currently holds approximately 200,000 BTC. This revelation comes as Bitcoin trades at $108,975, showing a modest 0.5% decline over 24 hours from its recent all-time high of $111,800.
FAQ Section
What is the timeline for the Bitcoin acquisition?
The program is designed to acquire 1 million BTC over a five-year period, with a minimum holding period of 20 years.
How will this affect Bitcoin’s price?
While immediate market impact remains speculative, institutional buying of this scale could significantly influence Bitcoin’s supply-demand dynamics.
What security measures are planned for the Bitcoin reserve?
Specific security protocols remain classified, but will likely follow enhanced federal custody standards.
