As the debate surrounding digital assets intensifies, Senator Cynthia Lummis, who chairs the Senate Subcommittee on Digital Assets, has become a prominent advocate for establishing a Strategic Bitcoin Reserve. Her belief in the potential benefits of such a reserve has garnered attention, especially in light of recent critiques from financial leaders like Jamie Dimon, CEO of a major bank, who dismissed the initiative as a waste.
In a recent interview with Bloomberg, Lummis emphasized that the U.S. military supports the plan, viewing Bitcoin as a significant asset in the ongoing economic competition with nations like China. This perspective has been described by some as a bold move, while others regard it as a potential risk.
Military Backs Bitcoin Reserve
Senator Lummis has conveyed that military leaders believe having Bitcoin on hand is crucial for international economic stability. They argue that it could serve as a safeguard against the adverse effects of sanctions or aggressive financial maneuvers by other countries, allowing the U.S. to maintain economic strength amid volatile geopolitical climates.
While traditional military assets such as weapons and ammunition have long been seen as cornerstones of national security, Lummis posits that Bitcoin could play a similarly critical role in future conflicts, where economic warfare may be more prevalent than conventional battles.
Legislative And Executive Moves
In her efforts to implement the Strategic Bitcoin Reserve, Lummis proposed legislation for the U.S. government to acquire and hold 1 million BTC, akin to current gold reserves. This initiative aims to utilize funds from the Treasury or the Federal Reserve rather than relying on new budget allocations. However, progress in Congress has been slow.
Moreover, former President Donald Trump took steps to establish a Bitcoin reserve on March 6, 2025, and announced plans for a digital asset stockpile encompassing various cryptocurrencies. This initiative would be funded by government assets seized through civil and criminal actions, which includes about 200,000 BTC the government currently holds.
During this unfolding narrative, Lummis has unveiled a proprietary model suggesting that Bitcoin’s price could experience a substantial rise over the next decade. She attributes this forecast to Bitcoin’s fixed supply, increasing institutional adoption, and network effects.
Nonetheless, analysts remain cautious, citing that long-term projections are susceptible to various unpredictable elements, including regulatory changes, technological advancements, and market sentiment, all of which could significantly alter the trajectory of Bitcoin.
Lummis has also commended Trump for advocating simplified regulatory frameworks for cryptocurrencies, asserting that digital currencies deserve a place in national economic strategy. With Trump’s family involvement in the DeFi sector and other crypto initiatives, Lummis envisions a future where engagement in the crypto economy is inevitable.
Skeptic Voices And Uncertain Path
Despite the enthusiasm expressed by Lummis and others, significant skepticism remains. Jamie Dimon has openly criticized the proposed reserve, labeling it a waste of resources. Detractors highlight the inherent volatility of Bitcoin, pointing out that a strategic reserve reliant on such an unpredictable asset may pose substantial financial risks.
Moreover, some economists at leading universities oppose the notion of financing a crypto reserve, arguing it contradicts sound fiscal policy amid the United States’ existing national debt, which nears $36 trillion. At present, discussions surrounding the bill to purchase 1 million BTC remain stagnant in committee, leaving the fate of the Strategic Bitcoin Reserve uncertain.
Featured image from Imagen, chart from TradingView
