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- Debashree Patra
Debashree Patra
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Nov 05, 2025 12:07 UTC
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U.S. Bitcoin Reserve Is the “Only Real Solution,” Says Senator Cynthia Lummis
Senator Cynthia Lummis calls Bitcoin the “only real solution” to U.S. debt, backing plans for a national Bitcoin reserve using seized BTC holdings.
The U.S. Treasury explores a Bitcoin reserve plan backed by 130,000 seized BTC, aiming to boost national finances without new taxes or spending.
Senator Cynthia Lummis has called Bitcoin the “only real solution” to help address the U.S. national debt. She says Bitcoin is not just another asset but a key tool that could strengthen the country’s finances over time.
According to Lummis, Bitcoin’s limited supply and potential for long-term growth make it similar to how gold reserves once supported national finances. She praised President Donald Trump and his administration for supporting the plan and expressed confidence that the reserve would eventually be implemented.
Government Exploring a Bitcoin Reserve
Initially, some policymakers suggested revaluing U.S. gold holdings to buy Bitcoin. But Lummis now says the Treasury and White House are exploring other options. This means Bitcoin could become part of the national reserve without using gold.
Treasury Secretary Scott Bessent and White House officials are reviewing how a Bitcoin reserve could work, signaling that the government is taking the plan seriously.
No New Taxes: Reserve Will Use Seized Bitcoin
A key question was how the U.S. would fund the reserve. Lummis clarified that no new taxpayer money would be spent. Instead, the reserve would use Bitcoin the government already owns from criminal case seizures. After a recent forfeiture, the U.S. now holds roughly 130,000 BTC, valued at over $34 billion, making it one of the largest government Bitcoin holdings in the world. The Treasury also said more Bitcoin could be added later using “budget-neutral” methods, without extra spending.
Bitcoin Reserve Gains Momentum
Interest in Bitcoin in government circles is growing. Earlier this year, President Trump signed an executive order to create a reserve framework. Analysts, including Galaxy Digital’s Alex Thorn, expect the reserve structure to be finalized before the end of 2025.
Supporters say a Bitcoin reserve would protect the U.S. from inflation, diversify national assets, and strengthen the country’s financial future. Critics, however, want more clarity on security, transparency, and management of the reserve.
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FAQs
A Bitcoin reserve could boost national assets, hedge against inflation, and diversify reserves without increasing taxes or spending.
No. The reserve would use Bitcoin seized in criminal cases, meaning no new taxes or federal spending would be required.
Analysts expect the reserve framework to be finalized before the end of 2025, following President Trump’s executive order.
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