Senator Cynthia Lummis has stated that the Strategic Bitcoin Reserve could serve as a financial safeguard and a means to address past generations’ fiscal mismanagement.
Lummis believes such a reserve could help rectify the economic burdens placed on younger generations, particularly the national debt.
Senator Lummis’ Bitcoin Reserve Push
In a recent interview, Lummis explained that a Strategic Bitcoin Reserve could cut the current debt in half. In 2025, the US national debt is over $36 trillion.
Lummis suggested the US could leverage Bitcoin’s appreciation to support the US dollar as the world’s reserve currency. She considers it crucial for maintaining economic stability and favorable trade advantages.
“It ensures that the US dollar is the most accepted currency worldwide, and then with Bitcoin underpinning it and being also a global means of exchange and store of value, gives us that double support for the US dollar,” Lummis said.
In addition, she referenced Bitcoin’s historical annual growth rate of approximately 55%. However, she acknowledged that this rate will gradually decline. According to Lummis, it could decrease to 45%, 35%, 25%, and so on over the next two decades.
Despite a declining growth curve, the Senator believes a $1 million Bitcoin reserve today could be worth roughly half of the US national debt in 20 years. She also noted that Robert F. Kennedy Jr. used a similar model. Therefore, Lummis projected that a larger reserve could potentially eliminate the entire debt.
“I look at a Strategic Bitcoin Reserve and its ability to grow and help me right the wrongs that my generation did by driving us into this terrible debt. It’s the only vehicle I see that can have that consequential effect,” she said.
On July 31, 2024, Senator Lummis introduced the BITCOIN Act, proposing the establishment of a 1 million Bitcoin reserve. Last month, she also became the first chair of the Senate Banking Subcommittee on Digital Assets.
Meanwhile, support for a Strategic Bitcoin Reserve is growing. At the state level, 15 states have publicly endorsed it, Satoshi Action Fund’s founder, Dennis Porter, shared on X (formerly Twitter).
At least 11 states have introduced bills to establish a Strategic Bitcoin Reserve. Furthermore, Arizona and Utah have approved their proposals through committees.
According to Porter, more than 3,300 letters have been sent to Members of Congress advocating for Bitcoin to be recognized as part of a strategic stockpile. This comes after President Donald Trump signed an executive order to establish a “national digital asset stockpile” without specifying Bitcoin.
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