U.S. Senator Lummis Calls for the Establishment of a "Bitcoin National Reserve" as the Sole Solution to the Debt Crisis

The U.S. Senator Cynthia Lummis recently stated that the United States should establish a “Strategic Bitcoin Reserve” to hedge against the growing national debt. She believes that a Bitcoin reserve is the only solution that can fundamentally balance America’s fiscal burden and revealed that the Treasury Department and the White House are exploring various structural approaches, including utilizing seized Bitcoin assets as a reserve base rather than revaluing gold or purchasing through new expenditures.

Bitcoin Reserve: America’s “Strategic Weapon” Against the Debt Crisis

Senator Cynthia Lummis recently pointed out in a public speech that establishing a “Strategic Bitcoin Reserve” is the “only feasible solution” to help the U.S. address its massive debt burden.

She praised President Trump and his team for their proactive attitude in promoting this proposal and emphasized that this move is not only financial innovation but also a necessary adjustment at the national strategic level.

Lummis stated that the core idea of the Bitcoin reserve is to view Bitcoin as a “hedging tool for balancing the asset-liability sheet.” Over time, the value of this reserve will naturally increase, thereby strengthening the U.S. sovereign asset structure.

In her view, Bitcoin’s scarcity and long-term appreciation potential make it a modern “digital gold,” with the potential to become a new pillar of national reserves.

White House and Treasury Department Review Multiple Reserve Structures: No Longer Relying on Gold Revaluation

In an interview with Bloomberg, Lummis revealed that Treasury Secretary Scott Bessent and the White House economic advisory team are studying how to establish a Bitcoin reserve system without relying on traditional gold revaluation mechanisms.

“Gold Revaluation” refers to the government adjusting the book value of gold assets to free up fiscal space, but this model has become limited under inflation and debt pressures.

She pointed out that current discussions include directly using seized Bitcoin controlled by the government as a reserve base, avoiding the Treasury Department from large-scale purchases of BTC on the open market, thus achieving a “budget-neutral” policy goal.

Sources of Bitcoin Reserve Funds: Seized Assets, No New Spending

Regarding financing mechanisms, Lummis indicated that there are no current plans for additional expenditures. According to an official policy statement released in March, some Bitcoin assets held by the U.S. Treasury will serve as the starting point for the reserve. These BTC come from criminal or civil forfeiture cases, such as nearly 130,000 Bitcoin previously seized from hackers and criminal groups, which, at current prices, exceeds $34 billion.

This makes the U.S. one of the world’s largest “sovereign Bitcoin holders.”

According to guidance issued by the Treasury in August, future reserve expansions will be carried out through a “budget-neutral” strategy, avoiding the use of new taxpayer funds.

Lummis supported this approach, believing that a “budget-neutral” path can reduce political resistance and highlight Bitcoin’s fiscal potential as a sustainable reserve asset. She also mentioned that revaluing gold reserves at market prices and transferring the appreciation to Bitcoin reserve accounts could further expand the reserve size.

Policy Momentum Grows: Washington Is Redefining Bitcoin’s National Role

Since March 2025, when Trump signed an executive order to initiate the “Strategic Bitcoin Reserve,” policy discussions within Washington have continued to heat up. The executive order requires the Treasury and relevant agencies to develop a national Bitcoin reserve framework, sparking speculation about the government’s potential gradual accumulation of BTC through “Government Wallets.”

Galaxy Digital research head Alex Thorn pointed out that the U.S. might formally establish a Bitcoin reserve system by the end of 2025, marking a strategic shift of Bitcoin from a private asset to a “national-level financial instrument.”

He believes this policy could not only introduce digital reserve assets into the dollar system but also enhance America’s position in the global digital economy competition.

Market and Policy Impact Analysis

The potential establishment of a national Bitcoin reserve has far-reaching implications:

• Sovereign Asset Diversification: Helps diversify risks associated with the dollar and gold;
• Inflation Hedge and Asset Appreciation: Bitcoin’s supply is capped at 21 million, providing inherent resistance to dilution in inflationary environments;
• Fiscal Transparency and On-Chain Monitoring: Government wallets can be publicly tracked via blockchain, increasing public trust;
• Policy Challenges: Regulatory frameworks, custody solutions, and asset utilization rules remain to be clarified.

Some critics argue that before establishing a comprehensive digital asset regulatory and security standard, rushing to set up reserves could trigger policy risks. However, from a global trend perspective, government holdings of Bitcoin are gradually becoming normalized—El Salvador, Argentina, and some Middle Eastern countries have already incorporated BTC into their fiscal reserves.

Conclusion

The U.S. “Strategic Bitcoin Reserve” is moving from concept to reality. With coordination among the Treasury, White House, and Congress, Bitcoin may become part of the U.S. sovereign asset structure for the first time.

If this plan is implemented, the U.S. will not only become one of the world’s largest “national Bitcoin holders” but may also redefine the future relationship between “digital currencies and sovereign credit.”

For the crypto industry, every step of this process could serve as a market structural turning point, profoundly impacting Bitcoin’s global standing.