Senator Proposes Gold-Based Funding for U.S. Bitcoin Reserves

• Lyla Velez
• August 17, 2025
• Policy
• 0 Comments

Senator Cynthia Lummis has unveiled a significant fiscal strategy through the proposed BITCOIN Act. The plan seeks to leverage the revaluation of U.S. gold reserves to procure large Bitcoin holdings over a five-year period, proposing a budget-neutral approach.

We cannot save our country from $37T debt by purchasing more Bitcoin, but we can revalue gold reserves to today’s prices and transfer the increase in value to build SBR. America needs the BITCOIN Act. — Senator Cynthia Lummis, Chair, Senate Banking Subcommittee on Digital Assets

The BITCOIN Act’s gold revaluation strategy seeks to diversify U.S. reserves, reflecting a fiscal innovation amidst economic challenges without incurring additional taxpayer liabilities.

The community, financial markets, and legislative sectors are closely monitoring the implications. Any decision could influence Bitcoin prices and shift economic strategies. The proposal signals an innovative governmental approach to digital assets.

This approach reflects historical government reliance on gold-backed debt. The modern twist involves indirectly acquiring Bitcoin, which could shape future reserves. Historical norms guide the strategy, potentially impacting fiscal policies long-term. Bold decisions on digital asset integration showcase unique sovereign wealth strategies.

Potential outcomes involve broader regulatory and market impacts, particularly for Bitcoin adoption. The alignment of legislative and executive branches on this proposal suggests U.S. institutions are open to integrating Bitcoin within national fiscal strategies, contingent on careful regulation and asset management.