Lummis Drops Bombshell: Bitcoin Legislation Could Slash $36T U.S. Debt—Or Just Distract From Fiscal Reckoning

Senator Cynthia Lummis just threw Bitcoin into the debt ceiling debate—claiming her proposed Bitcoin-friendly policies could help tackle America’s $36 trillion debt crisis. Here’s the breakdown:

The Bitcoin Bailout?
Lummis argues that embracing Bitcoin as a Treasury reserve asset and clarifying its regulatory status would attract capital, spur innovation, and—wait for it—reduce reliance on ’the kind of monetary policy that got us here.’ Cue skeptical Wall Street laughter.

The Fine Print:
The bill aims to classify Bitcoin as commodities (not securities), ease mining rules, and explore BTC-backed bonds. Critics call it a Hail Mary pass for a debt spiral decades in the making.

Bottom Line:
Whether this is visionary policy or political theater, one thing’s clear: when traditional finance’s playbook involves printing $1 trillion every 100 days, maybe it’s time to try the orange pill.

Her proposal has once again taken center stage—this time with full support from President Donald Trump, who is pushing for America to lead the world in digital financial innovation. “I am particularly pleased with President Trump’s support of my strategic reserve initiative,” Lummis added.

In March 2025, Senator Lummis officially reintroduced the BITCOIN Act, a sweeping legislative proposal that aims to establish a strategic Bitcoin reserve for the United States.

The plan is for the acquisition of 1 million Bitcoins—roughly 5% of the entire supply—over the next five years. To support the effort, the government would sell a portion of its gold holdings, changing from traditional assets to what Lummis describes as a “transformational, digital store of value.”

The Act, which was introduced in July 2024, failed to pass in its original form. However, with economic constraints increasing and public trust in fiat currencies dwindling, Lummis believes the timing is now optimal. She claims Bitcoin may bring fiscal stability, prevent inflation, and act as a hedge against geopolitical and financial threats.

She called Bitcoin a “new ledger-based asset” that brings transparency, security, and global utility. In her view, Bitcoin isn’t just a hedge—it’s a chance to modernize the economy and protect national wealth in a time of mounting debt and uncertain global markets.

She also say the move could position the U.S. as the world’s leading Bitcoin nation, similar to how it once led the gold standard. Critics argue it’s risky and speculative—but for Lummis and Trump, the message is clear: America must lead the digital currency revolution.

Also Read: Senator Cynthia Lummis to Co-Host Bitcoin for America Forum