Lummis: A Bitcoin Reserve Could Wipe Out America's Debt US Senator Cynthia Lummis (@SenLummis) has made her boldest case yet for a national Bitcoin reserve, telling a Bitcoin Magazine podcast
US Senator Cynthia Lummis (@SenLummis) has made her boldest case yet for a national Bitcoin reserve, telling a Bitcoin Magazine podcast that acquiring more than 5% of $BTC's total supply and holding it for two decades could go beyond reducing the national debt and "actually erase" it entirely.
In a conversation with Bitcoin Magazine host Spencer Nichols, Lummis stated that acquiring just 5% of Bitcoin's total supply, roughly 1 million BTC, and holding it for 20 years could reduce the national debt, currently over $39 trillion, by one-third to one-half. She went further, adding that holding even more than 5% of the world's Bitcoin "could actually erase our debt," describing it as "an important asset in a buy-and-hold strategy."
The comments reflect a fiscal argument Lummis has been building for years. She has argued that Bitcoin's fixed supply and long-term price trajectory make it a credible fiscal tool, not just a speculative asset for retail traders.
The remarks track closely with Lummis's formal legislative effort, the BITCOIN Act. The legislation, formally designated S. 954, directs the Treasury to acquire up to 1 million Bitcoin over a five-year period, representing roughly 5% of Bitcoin's total possible supply of 21 million coins, with holdings locked in a secure reserve for a minimum of 20 years.The acquisition would be financed through budget-neutral strategies such as Federal Reserve remittances and gold certificate revaluations.
Lummis was candid about the Senate bill's prospects. She was not optimistic about the bill's chances in the Senate, but expressed hope that the House version, introduced by Nick Begich (R-AK), would pass.Congressman Begich, alongside co-lead Congressman Jared Golden (ME-02), introduced the American Reserve Modernization Act of 2026 (ARMA), landmark bipartisan legislation to establish a Strategic Bitcoin Reserve and modernize how the United States manages digital reserve assets.
Lummis has also said she expects the US Treasury to start acquiring Bitcoin before the end of 2026, pointing to growing support within the Trump administration, including backing from Treasury Secretary Scott Bessent and senior White House officials. For now, no official purchase plan has been announced.
Critics have raised concerns about the strategy. In a February 2025 survey of economists by the University of Chicago, not a single economist agreed that borrowing money to create a strategic crypto reserve would benefit the US economy.A government holding 5% of Bitcoin's supply also raises concentration concerns and potential market manipulation questions, and if the reserve were ever liquidated, the downward price impact would be severe.
Sources:Benzinga: Lummis Says US Could Erase Its $39 Trillion Debt by Holding More Than 5% of World's BitcoinSenator Lummis Official Press Release: BITCOIN Act of 2025TheStreet: Senator Says Bitcoin Can Pay Down America's National Debt
