Senator Cynthia Lummis Supports Budget-Neutral Plan for Strategic Bitcoin Reserve

• Lummis backs budget-neutral Bitcoin reserve plan using confiscated crypto assets.
• Treasury to build SBR with seized Bitcoin, avoiding taxpayer-funded purchases.
• Gold revaluation proposed to expand reserves without increasing federal debt.

Senator Cynthia Lummis (R-WY) has backed Treasury Secretary Scott Bessent’s decision to avoid direct government purchases of Bitcoin for the Strategic Bitcoin Reserve (SBR). Her comments came after Bessent confirmed in a public interview that the reserve will instead be built using confiscated digital assets, a move intended to expand holdings without increasing federal spending.

Speaking with Fox News’ Maria Bartiromo on Thursday, Bessent explained that the SBR will rely on Bitcoin seized through asset forfeitures rather than taxpayer-funded market purchases. He said this approach ensures the program remains budget-neutral, an important factor amid concerns over the nation’s $37 trillion debt.

Bessent later expanded on his remarks in an X post, stating that Bitcoin “finally forfeited to the federal government” would serve as the foundation for the reserve created under President Donald Trump’s March executive order. He highlighted the Treasury’s commitment to exploring additional budget-neutral methods to increase holdings, aligning with the administration’s objective of making the United States a global leader in Bitcoin reserves.

Senator Cynthia Lummis Welcomes Approach

Senator Cynthia Lummis, a long-time advocate for digital asset adoption, voiced her support for Bessent’s plan in two August 14 X posts, calling his strategy “spot on” for identifying a budget-neutral path forward. She reiterated her stance in a follow-up post on August 15, saying that while purchasing large amounts of Bitcoin outright is not financially feasible, other measures, such as revaluing gold reserves to current market prices and applying the increased value to the SBR, could help grow the reserve without additional spending.

She also disclosed plans to work alongside Bessent and Cantor Fitzgerald CEO Howard Lutnick to develop more strategies that would allow the U.S. to expand its Bitcoin reserve while maintaining fiscal discipline. According to Lummis, these efforts are intended to keep the U.S. ahead of international competitors in securing Bitcoin reserves.

Confiscated Assets at the Core

Relying on seized cryptocurrency is a strategic shift from expectations among some Bitcoin advocates that the government might acquire additional holdings through open-market purchases. This approach leverages existing enforcement and asset forfeiture processes, meaning reserve growth will be tied to legal outcomes rather than new appropriations.

According to our previous post, Bitcoin prices have remained highly volatile, with the cryptocurrency hitting an all-time high above $124,000 on Thursday before easing to about $117K during the time of writing. Despite the fluctuations, the plan centers on integrating forfeited Bitcoin into the reserve, avoiding market price risks associated with large-scale purchases.