Wyoming Senator Cynthia Lummis: '2025 Will Be the Year for Bitcoin and Digital Assets’

Wyoming Senator Cynthia Lummis, known as the "Bitcoin Senator," has identified 2025 as a pivotal year for Bitcoin and crypto, with several proposed policies and key government positions expected to converge and spur change.

“With David Sacks as Crypto Czar, this will be the most pro-digital asset administration ever,"  Lummis wrote on X. “I look forward to working closely with [Sacks] to pass comprehensive digital asset legislation and my strategic bitcoin reserve.”

Earlier this month, Donald Trump appointed venture capitalist Sacks to oversee artificial intelligence and crypto policy initiatives next year.

The President-elect has promised to protect domestic crypto mining interests, shore up regulation, and make the U.S. the “crypto capital” of the world.

On the last two points, Sacks will “work on a legal framework so the crypto industry has the clarity it has been asking for and can thrive in the U.S,” Trump said on December 6.

Lummis’ enthusiasm follows a reshuffle of key government officials, including a new SEC chair, as Trump prepares to re-enter the White House for a second presidential term.

Central to the Senator’s vision is the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide Act, also known as the “Bitcoin Act.” 

The legislation proposes the creation of a Strategic Bitcoin Reserve, which she described as “a network of secure storage vaults, purchase program, and other programs to ensure the transparent management of Bitcoin holdings of the federal government.”

The initiative aims to accumulate 1 million Bitcoin—5% of the total supply—over five years. The reserve would be funded by reallocating existing Federal Reserve assets, such as bonds and gold, rather than creating additional debt. 

“This Bitcoin Act is going to be transformative for this country,” Lummis said during her speech at the Bitcoin conference in Nashville four months ago. “With a strategic Bitcoin reserve, we will have an asset that, before 2045, can cut our debt in half.”

The Act also mandates a 20-year holding period for these assets, focusing on a long-term commitment to the asset.

According to Arkham Intelligence data, the U.S. government already holds substantial Bitcoin reserves, estimated at $21 billion, primarily seized through criminal cases. If passed, the Bitcoin Act could integrate these holdings into the strategic reserve.

The federal push mirrors momentum at the state level. Ohio Representative Derek Merrin introduced a bill on Tuesday that would allow the state treasury to invest public funds in Bitcoin. 

Pennsylvania’s legislation, introduced by Representative Mike Cabell, seeks to allocate up to 10% of the state’s treasury reserves to Bitcoin as a hedge against inflation. 

Meanwhile, Texas has proposed funding its reserve through donations and authorizing Bitcoin payments for taxes and fees.

Edited by Sebastian Sinclair