“I am proud to reintroduce landmark legislation that will codify President Trump’s bold vision to establish the United States Strategic Bitcoin Reserve and strengthening our nation’s economic foundation for generations to come,” said Senator Lummis on March 11.

The Bitcoin Act, or “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act,” as it is officially called, was originally proposed in July 2024 and needed reintroduction due to the new legislative term.

The bill has several Republican co-sponsors, including Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

Proud to re-introduce the BITCOIN Act. Let’s secure America’s financial future.pic.twitter.com/jJFmMopP7h

Establishing a Nationwide strategic Bitcoin reserve

Key provisions of the Act include creating a network of secure Bitcoin vaults operated by the US Treasury Department and implementing a program to buy 1 million BTC, or approximately 5% of the total supply.

The Bitcoin Purchase Program authorizes the acquire of 200,000 BTC annually for five years and requires a minimum 20-year holding period.

It also aims to fund the initiative by diversifying existing funds from the Federal Reserve and Treasury and affirms the self-custody rights of private Bitcoin holders.

“Bitcoin is not simply a technological opportunity, but a national imperative for America’s continued financial leadership in the 21st century,” said Lummis.

Jim Justice called it a “common sense bill,” adding:

“There is plenty more to learn for me when it comes to Bitcoin and other cryptocurrencies, but as a businessman I know that this effort just makes sense.”

Meanwhile, Tommy Tuberville said, “There’s no reason why we shouldn’t use Bitcoin to pay down our national debt.”

“Decades of out-of-control spending has led to a $36 trillion national debt, and developing a Strategic Bitcoin Reserve is a critical step to improving our nation’s balance sheet,” said Bernie Moreno.

The bill also aims to reduce Federal Reserve discretionary surplus funds from $6.8 billion to $2.4 billion and redirect $6 billion of Federal Reserve remittances to the Treasury for the next four years.

Say it with me: this is the year for bitcoin and digital assets.

State SBR Update

There are currently 19 US states with strategic Bitcoin reserve legislation pending, 2 with bills in the final stages of approval, and 5 states that have rejected proposals to allow their treasuries to invest in BTC, according to the Bitcoin Reserve Monitor.

On March 6, President Trump signed an Executive Order to establish a strategic Bitcoin reserve using BTC already seized by the government.

The asset has made a minor recovery today, gaining 4.6% to reclaim the $83,000 price level during early trading in Asia on Wednesday morning. It has corrected by almost 30% from all-time highs.