Already during his campaign, newly elected US President Donald Trump advocated for a strategic bitcoin reserve. A legislative proposal by Republican Senator Cynthia Lummis outlines this initiative, targeting the accumulation of one million bitcoins - currently worth about $108 billion.
Trump had boldly endorsed bitcoin before the election. Speaking to a roaring crowd at a bitcoin conference in Nashville, the new president announced that his first executive act would be to fire the current SEC chairman. Under his administration, crypto would flourish. Trump promised to support the U.S. bitcoin mining industry, remove regulatory barriers, and ban central bank digital currencies (CBDCs). In his own words, cryptocurrencies would "go to the moon" and "skyrocket like never before." He also stated plans to create a strategic national bitcoin reserve. Will the "Lummis Bill" make this proposal a reality?
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One million bitcoin reserve
Trump's announcement focused primarily on the conversion of seized bitcoins held by the U.S. Department of Justice. Over the past decade, authorities have amassed approximately $22 billion worth of bitcoin through various seizures, which the DOJ has historically sold in smaller tranches. Under Trump, this bitcoin wealth is to be converted into a "permanent strategic reserve," with sales prohibited.
On July 31, shortly after Trump's speech, Senator Cynthia Lummis introduced the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide" (BITCOIN) Act in the Senate. Also known as the "Lummis Bill," this legislation would require the U.S. Treasury to purchase additional bitcoin, with a goal of one million bitcoins-about 5% of the total supply. This reserve would approximate the size of the United States' gold reserves. However, the proposal has stalled in the Senate and has yet to be voted on.
In recent speeches, Trump has reiterated his commitment to establishing a Strategic Bitcoin Reserve (SBR). However, the details of this reserve and whether the new president can deliver on his promises remain unclear. The conversion of 200,000 bitcoins currently held by the Department of Justice into Treasury assets would likely be the first step. Additional purchases would require bipartisan support in the House of Representatives.
What are Trump's priorities?
Just days before his inauguration, Trump surprised many by launching his own memecoin on the Solana blockchain. With 80% of the supply owned by his businesses, the president's personal wealth skyrocketed to over $40 billion. In addition, his wife launched a "Melania" memecoin. These moves raise questions about how high the strategic bitcoin reserve ranks on Trump's list of priorities. His early actions in office may provide further insight into his strategy.
President Trump’s Celebratory Victory Rally https://t.co/MCKNpDh8kG
— Donald J. Trump (@realDonaldTrump) January 19, 2025
