In a groundbreaking statement, United States Senator Cynthia Lummis (R-Wyoming) revealed that significant military leaders are now “enthusiastic advocates” for the establishment of a Strategic Bitcoin Reserve (SBR). This marks a notable moment as it is the first time a sitting senator has acknowledged support from high-ranking military officials for such an initiative.
Strategic Bitcoin Reserve: A New Frontier
“Military officials, particularly in Southeast Asia, understand the necessity of having a robust stockpile of Bitcoin, as we are currently engaged in an economic competition with China,” Lummis shared during her appearance on Bloomberg Television. “Looking towards our military leadership provides a clear indication of support for a Strategic Bitcoin Reserve.”
She reiterated her ambition to amass 1 million BTC, amounting to around 5% of the total supply, holding it for two decades. “My intention is to… significantly mitigate the US debt,” she stated. Lummis’s initial focus would be on utilizing Bitcoin already in government custody: “The best starting point is the assets held by the US Marshals Service… specifically, the asset-forfeiture dollars in the form of cryptocurrencies. This can lay the groundwork for year one of the strategic reserve.”
These comments come two months after President Donald Trump issued Executive Order 14233, which established a SBR funded with all BTC forfeited from federal investigations, directing agencies to move their assets into Treasury-managed cold storage.
Currently, the House and Senate are discussing corresponding “BITCOIN Act” legislation, which would formalize the reserve in law and allow the Treasury to acquire further coins without imposing additional costs on taxpayers. Nonetheless, Lummis admitted that legislation aimed at expanding or financing the reserve is unlikely to materialize this session.
“I don’t anticipate we will address this bill by 2025, as our immediate focus is on market structure,” she noted, emphasizing the ongoing debates surrounding the regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
In light of potential concerns that stockpiling BTC could undermine traditional precious metals, Lummis assured that she has “never suggested liquidating any of our gold or other hard assets.” Instead, she proposes to reassess the value of the Treasury’s gold certificates from 1934 to align them with current fair-market valuations, thus enabling a conversion to Bitcoin: “This means adjusting our gold certificates to reflect modern market values and using that increase to invest in Bitcoin.”
When pressed about JPMorgan Chase’s CEO Jamie Dimon advocating for Washington to stockpile “bullets, drones, and rare earth elements” instead of Bitcoin, Lummis countered: “Even top military leaders disagree with his perspective… While preparing for conventional conflicts is essential, we require a multifaceted strategy.”
Interestingly, the senator insists on a strictly Bitcoin-focused reserve. “Bitcoin operates on a proof-of-work basis,” she explained, making it clear that there is no intention to branch out into proof-of-stake assets or stablecoins within the national reserve framework.
As of now, BTC is trading at $105,494.
