Senator Lummis Supports US Strategic Bitcoin Reserve Amid Delays

US Senator Cynthia Lummis has announced that funding for the Strategic Bitcoin Reserve (SBR) can begin now, though legislative and operational delays remain. The reserve could utilize confiscated Bitcoin, creating potential revenue streams for the US government

Satpal S

Published

3 hours ago

Senator Lummis Confirms Strategic Reserve Funding Can Begin

According to Senator Lummis, despite legislative hurdles, the Strategic Bitcoin Reserve (SBR) can acquire Bitcoin “anytime.” Lummis posted the update on X on Monday, noting that while the process remains a “slog” on the legislative front, progress is possible thanks to initiatives under President Donald Trump.

Lummis stated:

“The rate of a fund for an SBR can start at any time,” reflecting an optimistic view of the U.S. government’s stance on digital assets.

Bitcoin as a Strategic Economic Instrument

Lummis made the remarks in response to a tweet by ProCap BTC Chief Investment Officer Jeff Park, who discussed the Strategic Bitcoin Reserve with Anthony Pompliano, a prominent Bitcoin advocate.

According to Park, the US government could potentially hold Bitcoin worth $1 trillion, based on paper gains from its gold reserves.
The nation’s fiscal debt stands at $37.88 trillion.
With assumptions of 12% annual Bitcoin growth, projections indicate a potential 30x return over 30 years.

Lummis commented:

“This is a fabulous articulation of why the SBR and passing the BITCOIN Act makes so much sense.”

Also Read : SWIFT Teams Up with Consensys to Build Cross-Border Payments System Powered by Blockchai n

How Funding Will Be Allocated for the Strategic Bitcoin Reserve

Capital allocation for the SBR is still under discussion:

Initial Funding: Utilizes Bitcoin seized by the Department of the Treasury through civil or criminal proceedings.
Future Purchases: Could be conducted budget-neutrally, with no additional impact on taxpayers.

This strategy aims to build a digital asset reserve responsibly, without extra expenditure.

Market Speculation and Anticipation

Since the SBR’s creation via an executive order by President Donald Trump, the launch timing remains uncertain, but investors and analysts are watching key developments:

First US government Bitcoin purchases for the SBR.
Capitalization methods using seized BTC.
Implications for fiscal strategy and digital asset management.

Anthony Pompliano noted:

“We already had Bitcoin on our balance sheet, which was good, but the real impact will come from future purchases.”

According to Lummis, future government Bitcoin acquisitions could influence both institutional and retail investors, potentially changing market dynamics.