US Congress promotes Bitcoin strategic reserve, requiring purchase of 1 million bitcoins within 5 years

Author: Shen'en

Digital gold is being stowed away in the safes of national reserves, and a quiet financial revolution is unfolding in Washington.

On September 17th, Washington, D.C., hosted a crucial conference on the future of cryptocurrency. Several prominent members of Congress and Bitcoin industry leaders gathered to discuss the "BITCOIN Act." This bill, reintroduced by Senator Cynthia Lummis in March of this year, would have the U.S. government purchase one million Bitcoins over the next five years for a national strategic reserve.

In the conference room, supporters' faces were filled with excitement and anticipation. Industry giants such as MicroStrategy founder Michael Saylor held heated discussions with politicians such as Senator Ted Cruz and Marsha Blackburn. They knew that this meeting could become a turning point in the history of currency.

01 Details of the meeting revealed

The meeting attracted several Republican lawmakers, including Senator Ted Cruz and Marsha Blackburn, as well as important industry representatives such as MicroStrategy founder Michael Saylor. Participants reached a strong consensus on the need for a strategic Bitcoin reserve. Hailey Miller, policy director at the Digital Power Network, stated, "There has been a lot of progress in the digital asset space, and the goal now is to ensure that the Bitcoin Act and the Strategic Bitcoin Reserve remain priorities." The meeting discussed next steps for the bill and strategies for building bipartisan support. Although the bill has not yet been scheduled for a hearing, supporters hope it will become an opportunity for "bipartisan cooperation."

02 Detailed Explanation of the Bill

The BITCOIN Act was reintroduced by Senator Cynthia Lummis in March of this year, aiming to include Bitcoin in the national strategic reserve assets on an equal footing with gold.

The most striking feature of the bill is its "budget neutral strategy," which means that the government will not purchase Bitcoin by increasing taxes or expanding the deficit. Lummis suggested obtaining funds to purchase Bitcoin by selling part of the Federal Reserve's gold reserves.

Based on current market prices, purchasing 1 million Bitcoins would require approximately $90 billion.The bill plans to purchase no more than 200,000 Bitcoins annually for five years, totaling 1 million Bitcoins, which will account for approximately 5% of the total Bitcoin supply.

03 Trump Administration's Preliminary Actions

This congressional meeting marks the United States' shift from administrative measures to legislative advancement. On March 6, 2025, US President Trump signed an executive order announcing the establishment of a "Strategic Bitcoin Reserve" and a "Digital Asset Reserve." The executive order adds approximately 200,000 bitcoins (valued at approximately $20 billion) confiscated by the government through judicial proceedings and administrative fines to the reserve. The Trump administration also requires the government to permanently hold bitcoins, prohibiting their sale, and to deposit the confiscated crypto assets into an independent reserve. The Trump administration's launch of the Bitcoin Strategic Reserve is ostensibly motivated by investment interests and voter support, but a deeper consideration is its desire to dominate the development of the global stablecoin and crypto markets. 04 States Have Already Actively Exploring This Even before the federal government took action, US states had already begun actively exploring this option. On March 9, 2025, the Texas Senate passed Senate Bill 21, which will establish a state Bitcoin reserve. Texas Lieutenant Governor Dan Patrick announced the creation of a state-managed fund to hold Bitcoin and other cryptocurrencies. The fund will hold cryptocurrencies with a market capitalization of at least $500 billion and will be eligible for state budget allocations. To date, at least 10 states in the United States are debating related legislation. Texas's practice provides a precedent for the federal government and demonstrates the rapid spread of the concept of Bitcoin reserves across the United States. 05 Deeper Motives and the Global Landscape The Trump administration's underlying motivations behind promoting a strategic Bitcoin reserve are worthy of attention. Through the "dollar-dollar stablecoin-cryptocurrency market" cycle, the United States aims to enhance the dollar's dominance in the global monetary system and its dominance in global financial markets. The dollar's dominance in the global monetary system has declined in recent years. According to data from the International Monetary Fund (IMF), by the third quarter of 2024, the dollar's share of global official reserves had fallen to 57.3%, a nearly 30-year low since 1995. BitMEX co-founder Arthur Hayes predicts that Bitcoin prices could climb to $200,000 by the end of 2025, with U.S. Treasury bond buybacks as the primary driver. He noted that this prediction is closely tied to trends in U.S. fiscal spending and broader political developments. 06 Controversy and Challenges Despite the positive response from the cryptocurrency industry to the bill, Bitcoin inclusion in the reserve system still faces numerous challenges. Federal Reserve Chairman Powell responded by stating that the Fed has no intention of adding Bitcoin to its balance sheet. Powell emphasized that the Federal Reserve Act prohibits the holding of Bitcoin and that the Fed does not intend to seek amendments to the law. He also stated that the issue should be considered by Congress, and that the Fed will not proactively seek to change existing regulations. Bitcoin's suitability as a strategic reserve asset has also been questioned. A typical currency simultaneously possesses three core functions: unit of account, medium of exchange, and store of value. Bitcoin, however, suffers from significant shortcomings in all three. Furthermore, Bitcoin's price fluctuates significantly [cite:9]. From November 6, 2024, when Trump was declared victorious, to December 5, 2024, the price of Bitcoin soared from less than $75,000 per coin to over $100,000 per coin, raising questions about its stability. In May 2025, Donald Trump Jr. announced at the Las Vegas Bitcoin Conference that the Trump Media Group had accumulated a Bitcoin treasury worth $2.5 billion. At the same conference, Senator Cynthia Lummis revealed that the US military had "expressed strong interest" in the Bitcoin strategic reserve program, suggesting that Bitcoin could become a new tool in geopolitical warfare. The United States has embarked on a path of incorporating Bitcoin into its national financial strategy. This path will not only reshape America's financial future but also potentially redefine the global monetary landscape of the 21st century.