Tue, 27 May 2025 22:38:06 +0100

Senator Cynthia Lummis announced at the Bitcoin 2025 conference in Las Vegas that former US President Donald Trump is supporting the BITCOIN Act, a landmark piece of legislation designed to have the US government purchase 1 million Bitcoin over the next five years. According to Lummis, Trump has a team within the White House dedicated to digital asset legislation, with plans to roll out significant initiatives in the coming weeks. The funding for this acquisition would reportedly come from existing funds within the Federal Reserve System and the Treasury Department, employing "budget-neutral ways" to avoid burdening taxpayers.

The BITCOIN Act, reintroduced by Lummis in March, aims to position the United States as a major player in the Bitcoin space. Senator Lummis emphasized the potential for this legislation to bring significant attention to Bitcoin both domestically and globally.

Impact on the Crypto Market

The potential acquisition of 1 million Bitcoin by the US government could have far-reaching effects on the crypto market. This action could signal a significant endorsement of Bitcoin as a legitimate asset class and could influence other nations to consider similar strategies.

• Price Surge: A government purchase of this magnitude could drive up the price of Bitcoin significantly due to increased demand and reduced supply.
• Increased Institutional Adoption: This move could legitimize Bitcoin further, encouraging institutional investors to allocate capital to the cryptocurrency.
• Market Stability: While initially volatile, a large Bitcoin reserve held by the US government might contribute to long-term market stability.
• Regulatory Scrutiny: Increased government involvement could lead to more comprehensive and potentially stricter regulatory frameworks for digital assets.

Future Outlook

Looking ahead, the implementation of the BITCOIN Act and the broader digital asset legislation being developed by the Trump administration could reshape the landscape of cryptocurrency in the United States. Several key developments are anticipated in the near future.

• Stablecoin Legislation: Senator Lummis mentioned that legislation on stablecoins is a priority, with a vote potentially occurring soon after the Senate recess. The GENIUS Act, aimed at establishing a legal framework for dollar-pegged stablecoins, has received bipartisan support and is expected to pass.
• Market Structure: The White House team is also working on legislation to define the market structure for digital assets, providing clarity and potentially attracting more participants.
• Bitcoin Strategic Reserve: The establishment of a Bitcoin Strategic Reserve could set a precedent for other nations, potentially leading to a global race to accumulate Bitcoin.
• Wider Crypto Integration: The overall effect of these legislative efforts could be a greater integration of cryptocurrencies into the traditional financial system.

The potential for the US government to acquire 1 million Bitcoin marks a pivotal moment for the cryptocurrency market. As legislative efforts progress, the future of Bitcoin and digital assets within the United States looks set for significant transformation.