Senator Lummis Proposes Bold Bitcoin Reserve Plan – Funded by Seized Crypto, Not Tax Dollars

Wyoming's crypto-champion Senator Cynthia Lummis just dropped a fiscal bombshell—a budget-neutral Bitcoin reserve fueled entirely by confiscated digital assets. No taxpayer money required, just the government recycling its crypto seizures into a strategic BTC war chest.

The twist? Wall Street hates it. By bypassing traditional Treasury purchases, Lummis' plan effectively cuts investment banks out of their usual middleman role in monetary policy. 'Why pay BlackRock fees when you can HODL forfeited Satoshis?' quipped one Bitcoin maximalist.

This isn't some theoretical white paper—the US Marshals Service currently holds over $5B in seized crypto. That's enough to make Bitcoin the 8th largest national reserve asset overnight. Take that, Swiss francs.

Of course, DC being DC, the proposal already faces opposition from lawmakers who'd rather blow the seized crypto on... well, have you seen the national debt clock lately?

Sen. Cynthia Lummis Applauds Budget-Neutral Bitcoin Plan

Speaking with reporter Maria Bartiromo on Thursday, Bessent revealed that the U.S. will not purchase bitcoin outright for the reserve—instead, it will use “confiscated assets” as a store of value.

In two August 14 X posts, Lummis called Bessent’s take “spot on” in terms of identifying a budget-neutral plan to increase America’s Bitcoin reserve.

“@SecScottBessent is right: a budget-neutral path to building SBR is the way,” Lummis said in an August 15 X post. “We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue Gold reserves to today’s prices & transfer the increase in value to build SBR.”

Sec. Bessent is spot on about the importance of bitcoin as a store of value in the digital age.

I look forward to continue working with @SecScottBessent & @howardlutnick to identify budget-neutral ways to continue growing our bitcoin reserve & outpacing adversaries in the race.

“I look forward to continue working with @SecScottBessent & @howardlutnick to identify budget-neutral ways to continue growing our bitcoin reserve & outpacing adversaries in the race,” she added.

Confiscated Crypto at the Core of U.S. Reserve Strategy

Despite hitting an all-time high above $124,000 on Thursday, Bitcoin’s value was hovering around $117,000 as of Friday.

Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President TRUMP established in his March Executive Order.

In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…

Bessent’s latest remarks are likely to disappoint Bitcoin holders who hoped the U.S. government WOULD buy up more of the cryptocurrency.

Following his interview with Fox News, Bessent took to X himself to clarify his commentary.

“Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order,” Bessent said.

“In addition, Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world,’” he added.