Wyoming Republican Senator Cynthia Lummis has reintroduced legislation to create a strategic bitcoin reserve, following President Donald Trump's recent executive order on the matter. The bill, known as the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act" or BITCOIN Act, was previously proposed in July 2024.

The legislation aims to transform Trump's executive action into permanent law. "We can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy," Lummis stated Tuesday on X.

Lummis's bill would establish a "decentralized network of secure Bitcoin vaults" operated by the U.S. Treasury Department. It also proposes a program to purchase 1 million bitcoin units over time, which would represent approximately 5% of the total Bitcoin supply, comparable to U.S. gold reserves.

Funding for the reserve would come from diversifying existing funds held by the Federal Reserve and Treasury Department. The bill has attracted support from several Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.

Republican Representative Nick Begich has introduced a companion bill in the House of Representatives. The initiative comes just days after President Trump signed an executive order to create a strategic bitcoin reserve and digital asset stockpile.

The proposal has received mixed reactions, with supporters calling it a "huge moment" while critics point to a lack of clear details in Trump's plan. Senator Tuberville expressed his support, stating: "There's no reason why we shouldn't use Bitcoin to pay down our national debt."