Sen. Lummis’ BITCOIN Act: A $36T Debt Bomb Defusal—Or Just Another Crypto Pipe Dream?

Washington’s latest Hail Mary to tackle the U.S. debt crisis? Turning to Bitcoin—because clearly, traditional finance has nailed it so far.

Senator Cynthia Lummis is pitching her BITCOIN Act as the fiscal escape hatch, claiming blockchain-based treasury management could slash the $36 trillion debt albatross. The bill aims to leverage Bitcoin’s transparent ledger for real-time auditing and—wait for it—"efficient" debt restructuring.

Critics are already rolling their eyes. "Ah yes, the same asset that swings 20% in a day will stabilize the dollar," muttered one Wall Street vet between sips of bourbon. Meanwhile, crypto advocates argue that programmable money could automate away bureaucratic bloat.

One thing’s certain: if this passes, the Treasury’s printer might finally get the break it deserves. Whether that’s a feature or a bug depends on which side of the fiat-crypto divide you’re on.

Senator Cynthia Lummis Promotes The BITCOIN Act

“I’m particularly pleased with President Trump’s support of my Strategic Bitcoin Reserve initiative, which will address our national debt while securing America’s position as the global leader in financial innovation,” the Republican senator said in a video shared on social media.

The BITCOIN Act is the only solution to our nation’s $36T debt. I’m grateful for a forward-thinking president who not only recognizes this, but acts on it. pic.twitter.com/NVWH6v2EcH

Introduced by Lummis and Congressman Nick Begich (R-AK) in March at the Bitcoin for America Summit, the proposed legislation would see the creation of a federal Bitcoin reserve in a bid to make the U.S. the leader in digital asset technologies.

Lummis further alleged that large-scale adoption of Bitcoin would be “transformative” and put “the everyday worker all over the world in control of their money.”

“As Bitcoin comes into more usage, its use makes the whole system more secure, more robust, and more capable of serving our needs all over the world,” she added. “We should be the global leader with this fantastic, new ledger-based asset that is in a digital format.”

The U.S. Head Towards A Strategic Bitcoin Reserve

Proponents of a Strategic Bitcoin Reserve widely believe that it would position the U.S. as a technologically forward-looking global power while acting as a hedge against traditional financial concerns.

Trump largely campaigned on enacting a crypto-friendly regulatory framework, promising to make the U.S. the “crypto capital of the world.”

In March, Trump signed an executive order mandating the development of a Strategic Bitcoin Reserve and digital asset stockpile.

“I am very positive and open-minded to cryptocurrency companies, and all things related to this new and burgeoning industry,” he said. “Our country must be the leader in the field.”

As of Friday afternoon, Bitcoin continued to experience a slight surge in value, hovering around $97,000.