• Cynthia Lummis urges the Treasury to use gold reserves to build a national Bitcoin reserve over five years.
• The US holds 328,372 Bitcoin from seizures and officials now debate direct long term purchases.
• Strong institutional demand supports Bitcoin even after a 45% drop from its recent peak.

Senator Cynthia Lummis has asked the Treasury Department to look at using part of the nation’s gold reserves to buy Bitcoin. She wants the United States to build a strategic Bitcoin reserve over time. Her plan calls for the government to acquire up to one million Bitcoin within five years. She believes this approach could strengthen the country’s financial position. She also sees it as a long term hedge against economic risk.

Lummis pointed to the size of the U.S. gold stockpile as a starting point. America possesses nearly 8,133 metric tonnes of gold. Those reserves cost about $1.3 trillion at present prices. She argues that even a small shift could fund meaningful Bitcoin purchases. In her view, the country should adapt its reserve strategy to reflect modern markets.

Proposal to Convert Gold Reserves

Under the proposal, the Treasury could sell part of its gold holdings. It could also revalue gold certificates to reflect current market prices. Either step would create room to buy Bitcoin without new borrowing. Lummis believes this path would allow gradual accumulation. She frames Bitcoin as an additional reserve asset, not a replacement for gold.

She argues that Bitcoin can protect against inflation over time. She also believes it may guard against currency depreciation. By adding Bitcoin, the government could diversify national reserves. Diversification, she says, strengthens long term stability. The plan focuses on steady purchases rather than sudden shifts.

Existing Government Bitcoin Holdings

The U.S. government already owns a large amount of Bitcoin. Authorities obtained most of it through criminal investigations. Current holdings stand at about 328,372 Bitcoin. At recent prices, those assets are worth more than $22 billion.

Treasury Secretary Scott Bessent has highlighted the growth of seized digital assets. He noted that earlier holdings valued near $500 million grew to more than $15 billion. That increase has drawn attention from policymakers. It has also raised questions about whether the government should hold more Bitcoin. The existing stockpile now plays a role in the broader debate. Scott Bessent also recently confirmed that the US government can only hold seized Bitcoin and cannot invest taxpayer funds in digital assets.

Market Conditions and Institutional Demand

Bitcoin has faced sharp volatility in recent months. The price fell nearly 45% from its recent high. However, large institutions continue to add exposure. BlackRock, Fidelity, Strategy, and MARA Holdings have expanded their positions.

Institutional demand remains a key force in the market. Many firms treat Bitcoin as a long term asset. Bitcoin now trades near $68,200. Its market capitalization stands above $1.3 trillion. It also posted a small gain over the past day.

Lummis has long supported Bitcoin focused legislation. Back in 2024, Cynthia Lummis supported Scott Bessent’s vision for a Strategic Bitcoin Reserve. Her proposal adds fresh momentum to the policy discussion. Lawmakers now weigh how digital assets fit into national reserves. The debate could shape future decisions on how the United States manages its financial base.