In a surprising yet strategic move, former U.S. President Donald Trump has thrown his weight behind the BITCOIN Act, a bold legislative proposal aimed at propelling the United States into the crypto vanguard. Speaking at the Bitcoin 2025 conference in Las Vegas, Wyoming Senator Cynthia Lummis announced that the administration is actively working on this landmark digital asset legislation, with plans to acquire 1 million Bitcoin (BTC) over the next five years. The acquisitions, she noted, will be financed through existing funds within the Federal Reserve System and the Treasury Department, sidestepping any additional burden on taxpayers.
The BITCOIN Act: A New Era for U.S. Digital Assets
The BITCOIN Act, reintroduced by Lummis in March 2025, represents a significant shift in how the U.S. government approaches digital assets. As Lummis explained, the bill instructs the government to strategically expand its Bitcoin holdings, a move that could cement Bitcoin’s role in the national economy. “President Trump supports the bill,” Lummis declared, underscoring the administration’s commitment to integrating Bitcoin into the broader financial framework. This aligns with broader predictions that Bitcoin ETFs and government adoption could drive BTC to $1M by 2029.
Industry experts are watching closely. “This is a monumental step,” said Alex Thorn, head of Firmwide Research at Galaxy Digital. “The U.S. taking such a proactive stance in acquiring Bitcoin could set a precedent for other nations.” It’s a sentiment echoed by many in the crypto space, who see this as a potential catalyst for broader adoption of digital currencies.
Stablecoin Legislation: A Complementary Effort
While Bitcoin takes center stage, the administration is also advancing legislation on stablecoins, which have become integral to the crypto ecosystem. The Senate Banking Committee has already given its nod to the stablecoin bill, a critical piece of legislation that could soon reach the Senate floor. The bill, known as the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), has garnered substantial bipartisan support, clearing a procedural vote with a 66 to 32 majority on May 19.
David Sacks, Trump’s top crypto advisor, expressed confidence in the GENIUS Act’s passage. “It’s going to pass,” he assured, highlighting the administration’s dedicated efforts to establish a robust legal framework for stablecoins. With dollar-pegged stablecoins like Tether’s USDT and Circle’s USDC dominating the market, the act could further entrench the U.S. dollar’s position as the global reserve currency.
Market Reactions and Future Implications
The market’s response to these developments has been mixed, with Bitcoin prices experiencing fluctuations amid the news. Market analysts suggest that while the government’s acquisition plan may bolster Bitcoin’s credibility, it could also introduce volatility as it unfolds. “The scale of this acquisition is unprecedented,” noted crypto analyst Maya Zehavi. “It raises questions about market impact and the logistics of such extensive buying.” This strategic move also reflects the growing view that Bitcoin is a matter of national security, as highlighted by the Deputy CIA director.
Despite the excitement, there are lingering concerns. Some critics question the feasibility of acquiring such a vast amount of Bitcoin without distorting the market. Others worry about the potential centralization of Bitcoin holdings within government hands—a scenario that seems ironic given Bitcoin’s decentralized ethos.
As the U.S. moves toward this ambitious integration of digital assets into its financial system, the world watches with bated breath. If successful, the BITCOIN Act could herald a new era of digital finance, but its ultimate impact remains to be seen. Will this bold strategy redefine financial systems, or will it encounter insurmountable hurdles along the way? Only time will tell.
Source
This article is based on: Trump supports bill to buy 1 million BTC — Senator Lummis
Further Reading
Deepen your understanding with these related articles:
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- Trump’s Crypto Sherpa Bo Hines Says Crypto Legislation on Target for Quick Completion
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
