National Bitcoin Agenda Proposed: Senator Lummis Advocates for National Strategy and Tax Overhaul by 2025
Senator Cynthia Lummis, a prominent figure in the US political landscape, has been actively pushing for the adoption of cryptocurrencies and a national Bitcoin reserve strategy.
At the 2025 Bitcoin Conference, Lummis introduced the BITCOIN Act of 2025, proposing that the U.S. Treasury acquire one million Bitcoin over five years to hold in a Strategic Bitcoin Reserve (SBR). This proposal includes placing Bitcoins in secure cold storage for at least 20 years, with Treasury required to provide regular public reports on the reserve fund. The bill recognizes Bitcoin’s role as a diversification tool and hedge against economic uncertainty.
In terms of cryptocurrency taxation, Lummis has proposed legislation aimed at reforming the tax treatment of crypto transactions. The bill includes de minimis thresholds for annual and per transaction reporting, and clarifies tax treatment for crypto-specific income such as mining and staking rewards.
Lummis has also championed the integration of cryptocurrency into mainstream financial systems. She has proposed that government-backed entities like Fannie Mae and Freddie Mac incorporate crypto in mortgage risk models and accept crypto collateral to enhance accessibility for digital asset holders.
The Senator's initiatives reflect her leadership in pushing comprehensive crypto regulation that balances innovation, consumer protection, and national economic interests.
Here's a summary of the current status of Lummis's proposals:
| Area | Status | Details | |------------------------------|-----------------------------------------------|--------------------------------------------------------------------------------------------------| | Strategic Bitcoin Reserve| Introduced BITCOIN Act (2025), in committee | Treasury to buy 1 million BTC, 20-year holding, regular reports required, bill recognizes BTC as diversification and hedge asset[1] | | Cryptocurrency Taxation | Bill introduced proposing reforms | Includes thresholds for crypto transactions, treats mining/staking income specifically, aims for fair treatment preventing punitive taxes[3][4] | | Crypto Integration in Finance | Pushing bills to integrate crypto into mortgage risk and collateral frameworks | Proposed inclusion of crypto assets in Fannie Mae/Freddie Mac models, aiming to increase crypto utility in traditional finance[2] |
Moreover, Lummis suggested that acquiring and holding one million Bitcoin over a 20-year period could help reduce the nation's $37 trillion debt. She also stated that transactions below $600 per day should not be subject to taxation in her proposed cryptocurrency taxation framework.
Lummis has also highlighted the potential of Bitcoin as a defense asset against foreign threats, particularly from nations like China. She has discussed the market structure bill and its implications for digital asset firms, and has noted that for many business owners and operators, the market structure bill is more significant than the stablecoin bill.
However, Lummis has mentioned that the lack of a confirmed IRS director is hindering structural changes in the regulation of digital assets. She has also pointed out efforts underway to shift the regulatory approach towards a more constructive and balanced environment.
[1] CoinDesk. (2025, March 11). Senator Lummis Introduces Bitcoin Reservation Act to Congress. [online] Available at: https://www.coindesk.com/policy/2025/03/11/senator-lummis-introduces-bitcoin-reservation-act-to-congress/
[2] Yahoo Finance. (2025, February 10). Senator Lummis Wants Fannie Mae, Freddie Mac to Accept Bitcoin as Collateral. [online] Available at: https://finance.yahoo.com/news/senator-lummis-wants-fannie-mae-freddie-mac-accept-bitcoin-collateral-162600904.html
[3] Forbes. (2025, April 15). Senator Lummis Proposes Cryptocurrency Tax Reform Bill Aimed At Simplifying Reporting Requirements. [online] Available at: https://www.forbes.com/sites/chuckmorrison/2025/04/15/senator-lummis-proposes-cryptocurrency-tax-reform-bill-aimed-at-simplifying-reporting-requirements/?sh=664d3b816631
[4] Cointelegraph. (2025, May 20). Senator Lummis proposes crypto tax reform bill to clarify mining, staking income. [online] Available at: https://cointelegraph.com/news/senator-lummis-proposes-crypto-tax-reform-bill-to-clarify-mining-staking-income
- Senator Cynthia Lummis's BITCOIN Act of 2025, which aims to establish a Strategic Bitcoin Reserve (SBR) with the U.S. Treasury, positions Bitcoin as a diversification tool and hedge against economic uncertainty, with the proposed plan to secure Bitcoins in cold storage for at least 20 years and provide regular public reports on the reserve fund.
- In terms of cryptocurrency taxation, Lummis has proposed legislation that aims to simplify reporting requirements, establishing de minimis thresholds for annual and per transaction reporting, and clarifying tax treatment for crypto-specific income such as mining and staking rewards.
- Lummis has advocated for the integration of cryptocurrency into mainstream financial systems by proposing bills that would encourage government-backed entities like Fannie Mae and Freddie Mac to incorporate crypto in mortgage risk models and accept crypto collateral, thereby enhancing accessibility for digital asset holders.
