In July, Wyoming GOP Senator Cynthia Lummis introduced a bill earlier this year, the Strategic Bitcoin Reserve bill. Coin Telegraph reported at the time:
The bill would establish a “decentralized network of secure Bitcoin vaults” under the control of the United States Treasury. The bill also directs lawmakers and bureaucrats to enact strict cybersecurity parameters and other physical security measures to ensure that Bitcoin funds are not stolen.
The bill also laid out a goal of accumulating 1 million Bitcoin over time, or roughly 5% of Bitcoin’s total supply, using existing US Treasury funds to acquire the Bitcoin in amounts that mirror the US Treasury’s gold allocation. In conjunction with the introduction of the bill, the Wyoming senator also released a statement about the historic proposal:
As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve.
Around that same time, Donald Trump embraced his newfound love for cryptocurrencies and tokenization, and has made a number of promises to become the so-called “Bitcoin President,” and has floated the idea of establishing a “Bitcoin dollar” and making the U.S. the leading hub for Bitcoin mining. Trump said in July he would “create a framework to enable the safe, responsible expansion of stablecoins […] allowing us to extend the dominance of the U.S. dollar to new frontiers all around the world.” He then claimed that his administration’s work in cementing dollar stablecoins, “America will be richer, the world will be better, and there will be billions and billions of people brought into the crypto economy and storing their savings in bitcoin.” He added, “America will become the world’s undisputed bitcoin mining powerhouse.” The United States government is among the largest holders of bitcoin,” he also promised.
SEE: Tokenization: The New World Order Monetary System To Digitize All Assets And Nature, Including You
Wyoming is the first state in America set to launch its own stablecoin in 2025 pegged to the value of the U.S. dollar, with the premise of allowing Americans and businesses a faster and cheaper way to transact while creating a new income stream for the state.
In November, Lummis then suggested that the Treasury convert its gold assets into Bitcoin, over 8,000 tons of gold holdings to create this proposed BTC strategic reserve.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Lummis said in an interview with Bloomberg. “So the effect on the US balance sheet is pretty neutral.”
Bloomberg added: ‘Lummis’ bill would greatly expand the scope of what Trump so far has indicated is his plan for a strategic Bitcoin reserve, which is for the government to maintain ownership of the roughly 200,000 tokens that the US already possesses following asset seizures. According to Lummis’ bill, the cryptocurrency would be held for a minimum of 20 years, and the presumed appreciation in value would help to reduce the national debt.’
But Lummis’ bill has no co-sponsors and will probably not go far in Congress. But there appears to be some bipartisan support for the concept of a Bitcoin reserve. Democratic Congressman Ro Khanna said in October he is in favor of the United States using its stash of occupied Bitcoin as a strategic reserve asset.
Yesterday, Alabama State Auditor Andrew Sorrell also revealed that he is in favor of a BTC reserve.
“Crypto is here to stay,” Sorrell said, and “the fight for which states will benefit from it has begun.” “The states that are first to adopt a tax and regulatory framework that are friendly to crypto will attract business and investment.”
“[Cryptocurrency] is also the most rapidly growing asset class (averaging an astounding 55% a year for the last 15 years). […] Investing in Treasuries and bonds certainly has its place, but earning a 4% yield while inflation is 2.7% is barely breaking even,” he added.
Sorrell believes Alabama’s BTC reserve should be modeled after the Federal BTC reserve patterned after Trump’s proposed model. “What happens if the dollar ceases to be the reserve currency of the world?,” Sorrell argued. “What happens if inflation runs 8% again like it did during the post-pandemic era? Bitcoin’s value is unaffected by what happens to the U.S. dollar.”
Moreover, today Texas legislators introduced a bill to establish their own BTC reserve.
Decrypt reported: ‘The proposed bill, H.B. No. 1598, was introduced by Texas State Representative Giovanni Capriglione. It seeks to build up a supply of Bitcoin for the state, with the funds held for at least five years without being sold, plus it will allow Texas citizens to make donations to the fund.’
“A strategic Bitcoin reserve aligns with Texas’s commitment to fostering innovation in digital assets and providing Texans with enhanced financial security,” the bill states. “The comptroller shall prohibit transactions involving foreign countries, entities or individuals outside of Texas, or entities or individuals known to engage in illegal activities.”
The text also states that crypto held in cold storage (a wallet on a device not connected to the internet) cannot be used for transactions outside of Texas or abroad.
In a statement to Decrypt, Capriglione explained that “We’ve slowly planted the seeds and planted the education for members on it,” he said, adding that “probably the biggest enemy of our investments is inflation.”
Coin Telegraph published a succinct post explaining how this federal Bitcoin reserve would operate and its role in paying down debts. However, even if BTC reaches $150K in value – (it is currently trading above $101K at the time of this posting) – the accrued reserve value would not be enough to pay down existing U.S. debt. The country is tacking on an extra $1 trillion dollars in interest payments on existing U.S. federal debt.
The publication wrote:
Assume the US holds $50 billion in Bitcoin reserves at an average purchase price of $30,000 per coin. If Bitcoin’s price rises to $150,000 per coin, the reserves would be worth $250 billion, creating a profit of $200 billion.
While this would only dent the overall debt, it could make meaningful contributions to specific fiscal programs or interest payments. Bitcoin reserves could serve as a geopolitical and financial tool, reducing reliance on fiat reserves and diversifying away from traditional assets subject to inflationary pressures. Additionally, Bitcoin might help counterbalance deficits in scenarios where inflation erodes the value of the dollar.
In the short term, Bitcoin is unlikely to become a primary tool for managing national debt. Its role would be more complementary, offering diversification and potential inflation hedging. However, if Bitcoin matures into a globally accepted, stable reserve asset akin to gold, it could play a larger role in fiscal strategies.
For now, Bitcoin’s real contribution lies in modernizing the Treasury’s approach to asset management, signaling openness to innovation while maintaining a focus on long-term fiscal sustainability.
AUTHOR COMMENTARY
The Bitcoin reserve is a novel and intriguing idea on paper, but this in no way should be taken seriously in paying down debt. Furthermore, notice how Trump and the halls of Congress and the Senate are not demanding a return to sound constitutional money, gold and silver. Instead, they want to sell real, tangible assets for something that does not even physically exist. That should tell you all you need to know.
But whether you like it or not, if you read my tokenization essay then you know this is the direction things are going quite fast. It’s going the way of crypto, CBDCs and tokenization, and that’s a fact. The fantasies posited online about returning to a gold standard are frankly laughable.
SEE: Tokenization: The New World Order Monetary System To Digitize All Assets And Nature, Including You
If Trump was truly “on your side,” then he’d be fighting to get us back on sound currency, not digits on a screen – digits that are recorded and tracked in real-time. I do not believe for a nanosecond that just because “it’s in the blockchain” means anything, and this can and will be heavily manipulated.
Just you wait, because I figure we will eventually hear reports of “hackers,” cyberattacks and crypto fraud that caused prices to massively fluctuate in value, or suddenly “vanished” without a trace, and just the fact that crypto whales will continue manipulate the value by buying up massive amounts of it and then selling at strategic moments.
Ecclesiastes 7:12 For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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