US Lawmakers Push for Strategic Bitcoin Reserve

By: Eliza Bennet

Recent discussions at the 2025 Bitcoin Conference in Las Vegas highlighted growing momentum among US lawmakers and industry experts to establish a strategic Bitcoin reserve. Spearheaded by Wyoming Senator Cynthia Lummis and supported by military generals, the initiative aims to position Bitcoin as a key element of the country's economic and national security strategy. The proposal involves building a reserve of up to 1 million BTC over five years, a move framed as crucial for bolstering the nation's economic deterrence.

Lummis shared that the support for such reserves is strong among several US military generals who acknowledge that economic power is as critical as military strength in addressing international aggressors. She emphasized that having strategic Bitcoin reserves could expand US energy policy and industrial capacity, citing China’s 2021 mining ban as an opportunity that pushed many mining operations to North America. Additionally, the concept of Bitcoin reserves garnered state-level interest, with Arizona and New Hampshire already passing legislation to adopt similar strategic reserves.

In a complementary approach, Matthew Sigel, VanEck's head of digital assets research, proposed a mining royalty system as a budget-neutral way to bolster the reserve. Sigel suggested amending congressional budget bills to include small provisions requiring miners to donate block rewards to the Treasury, framing it as an environmental clean-up measure by leveraging waste methane for BTC mining. This system would allow for organic reserve growth without direct taxpayer allocation and could be implemented swiftly through legislative action.

President Donald Trump’s administration has signaled support for these efforts, showing interest in strategic digital asset management. Endorsing the BITCOIN Act, Trump’s executive order from March 6, 2025, directs federal departments to expand holdings in a tax-neutral way, aiming to fortify federal assets without new taxpayer expenses. The dual strategy of federal and state-level actions reflects a nationwide effort to adapt to emerging economic and technological landscapes and ensure competitive advantages on the global stage.