In a significant development for the cryptocurrency landscape, Senator Cynthia Lummis (R-Wyo.) has expressed her support for a budget-neutral strategy aimed at establishing a Strategic Bitcoin Reserve. This stance comes as an alternative to the idea of purchasing additional Bitcoin (BTC) to mitigate the growing national debt, which has reached a staggering $37 trillion in 2025.
On Thursday, Lummis voiced her agreement with Treasury Secretary Scott Bessent, who affirmed the Treasury Department’s commitment to investigating budget-neutral options for enhancing the Bitcoin stockpile. Lummis stated,
“We cannot save our country from $37 trillion debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices and transfer the increase in value to build SBR.”
This proposal emphasizes a shift in focus from accumulating Bitcoin to leveraging existing assets, particularly gold.
Lummis has been a strong advocate for cryptocurrency legislation, notably the BITCOIN Act. This proposed bill outlines a plan to acquire 1 million BTC over a five-year period, with a holding duration of 20 years. The funding for this initiative would be sourced from Federal Reserve remittances and other financial mechanisms. Responding to Bessent’s commitment, Lummis remarked,
“I have a ₿ill for that.”
However, this proposal has not gone without criticism. Prominent Bitcoin skeptic Peter Schiff challenged Lummis’s argument regarding the potential value increase of gold certificates, asserting that
“There is no increased value. The extra money would have to be printed into existence by the Fed. We don’t need to create more inflation to buy Bitcoin.”
Schiff’s perspective highlights concerns about inflation and the economic implications of leveraging gold for Bitcoin acquisition.
Interestingly, Bessent had earlier clarified that the government would not be purchasing additional Bitcoin, stating that only confiscated assets would contribute to the construction of the reserve. Furthermore, he expressed skepticism about Lummis’s proposal to revalue gold assets as a feasible option.
Amid these discussions, there has been little movement from the executive branch since former President Donald Trump signed an order earlier in 2025 to initiate the establishment of a Bitcoin reserve. In May, Trump’s crypto advisor David Sacks indicated that the framework for acquiring Bitcoin was in place, but it hinged on generating enthusiasm from the Commerce and Treasury Departments.
In related news, recent reports suggested that the U.S. Marshals Service, a division of the Department of Justice, sold some Bitcoin. However, blockchain analysts have noted that definitive conclusions cannot be drawn until an official announcement is made.
As of now, Bitcoin is trading at approximately $118,799.22, reflecting a decline of 3.81% over the past 24 hours, according to data from Benzinga Pro. This fluctuation underscores the volatile nature of cryptocurrency markets and the ongoing debates surrounding its regulation and integration into the national economy.
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