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The Bitcoin Act– A sign of relief for investors?

New legislation aims to bring clarity. Will it be the stability crypto investors have been waiting for?

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Cryptopolitan News
March 13, 2025 • Estimated Reading Time: 8 minutes

Good evening, and welcome to the Cryptopolitan Daily.

March 10– Crypto loving senator Cynthia Lumis shines a ray of hope on the markets. The infamous “BITCOIN Act” has been reintroduced to the US congress.

“Today, I am proud to reintroduce landmark legislation that will codify President Trump’s bold vision to establish the United States Strategic Bitcoin Reserve and strengthen our nation’s economic foundation for generations to come.”

Cynthia Lumis

The bill has five Republican Senators cosponsors: Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH).

The legislation is a build up of Trump’s executive order to establish a US Bitcoin Reserve and a Digital asset Stockpile. Read more about that here.

Understand the key points of the BITCOIN Act with Cryptopolitan

Establish a decentralized network of secure Bitcoin vaults operated by the United States Department of Treasury with statutory requirements ensuring the highest level of physical and cybersecurity for the nation’s Bitcoin holdings.

  • The US Government will likely begin holding Bitcoin as apart of it’s national reserves like it’s potential gold storage at Fort Knox– most likely distributed as cold storage in physically secured government facilities, across multiple locations, hence “decentralised”

Implement a 1-million-unit Bitcoin purchase program over a set period of time to acquire a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States.

  • This would make US government the largest holder of Bitcoin, That’s equivalent in spirit to how the US holds the largest gold reserves globally (~8,100 tonnes), worth around $628 Billion. This accumulation is likely to happen gradually over time, to not shock the markets.

Be paid for by diversifying existing funds within the Federal Reserve System and Treasury Department. 

  • The government won’t print money to purchase Bitcoin, because that would devalue the dollar against Bitcoin instead the Government will diversify– sell existing reserves like gold and bonds to fund the purchase. 

Affirm self-custody rights of private Bitcoin holders and emphasize that the strategic Bitcoin reserve shall not infringe upon individual financial freedoms.

  • The Government would officially protect the citizen’s right to hold Bitcoin privately, protecting them from state seizures and overregulation.

What is Cynthia Lumis aiming for?

A pro crypto stance is not new for Cynthia, she is often called the “Crypto Queen of the Senate” , Cynthia co-auhtored the Lummis-Gillibrand Responsible Financial Innovation Act–a comprehensive bill to define the regulatory framework for crypto assets in the US.

She has been vocal about how the real problem in the industry are bad actors, and with clear regulations, US can be the “Crypto Capital of the World”

The BITCOIN Act aims to diversify the US government holdings and tackle its mammoth 36 Trillion Dollar debt, but is it even possible?

Not directly. But:

  • It can diversify national balance sheets, like a hedge fund managing risk.

  • It can outperform traditional assets over decades.

  • And it can signal global financial leadership, attracting innovation and wealth.

Markets respond

After the underwhelming Crypto Summit and mounting recession fears, investors finally got a moment of relief. Following the hearing, Bitcoin rebounded, signalling a potential shift in market sentiment. Read the full aftermath of the Crypto Summit and the market reaction and what it means moving forward.

Cryptopolitan’s Take

Whether the BITCOIN Act passes or not is one thing—but what truly matters to the market is Senator Cynthia Lummis’ unwavering support for the industry.

This signals a broader shift—crypto is no longer just viewed through the lens of scams and speculation. It has become a political agenda, closely watched by governments worldwide.

What starts as observation turns into debate, and debates eventually shape policy and law—just as we’ve seen in the U.S. before.

At Cryptopolitan, we track this journey from discussion to legislation, ensuring you stay ahead of the curve.

Like this newsletter? Browse more editions here.

Further read: market-moving headlines 🔥

The crypto market, Bitcoin surges past $84K, and XRP crosses $2.25 after lower-than-expected U.S. inflation data eases market concerns.

S&P 500 entered its second correction this week, dropping 1.4% and hitting 10% losses from February’s peak.

The company argues that hundreds of AI-related state laws could hurt U.S. tech progress and give China an edge.

Traders in London are buying Russian debt, especially Gazprom bonds, anticipating a rise in value if restrictions are removed.

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