National Bitcoin Strategy Proposal: Senator Lummis Advocates for Strategic Action and Tax Overhaul by 2025
At the 2025 Bitcoin Conference, Senator Cynthia Lummis put forth a comprehensive framework for cryptocurrency taxation and integration into the U.S. fiscal strategy. The proposal, aimed at fostering fairness and long-term government investment in Bitcoin, received attention from business owners and operators who expressed concern about the market structure bill.
A Fairer Approach to Crypto Taxation
Senator Lummis's taxation plan includes a $300 de minimis exemption for crypto transactions. This move is intended to put an end to unfair tax practices and level the playing field for digital assets. By exempting transactions below $600 from taxation, Lummis hopes to reduce the burden of double taxation and encourage wider adoption of cryptocurrencies.
The BITCOIN Act of 2025
Lummis also introduced the BITCOIN Act of 2025, which proposes that the U.S. Treasury acquire 1 million Bitcoin over five years to establish a Strategic Bitcoin Reserve (SBR). The SBR would be held in secure cold storage for at least 20 years, similar to how gold reserves are managed. The legislation includes regular public reporting requirements and officially recognises Bitcoin as a valuable tool for economic diversification and a hedge against monetary instability and economic uncertainty.
Bitcoin as a Deflationary Asset
Lummis argues that Bitcoin’s scarcity—with a capped supply of 21 million coins—and its decentralized nature make it an effective safeguard against inflation and government overreach. This aligns with her broader vision to strengthen economic resilience by integrating Bitcoin into government financial assets and infrastructure.
Broader Crypto Integration
In addition to these legislative efforts, Lummis is working towards allowing cryptocurrencies to be used as collateral in mortgage systems, enhancing their practical utility. These initiatives parallel broader federal efforts to formalize digital asset regulation and expand crypto integration.
A Constructive Regulatory Environment
Senator Lummis emphasised the need for a more constructive and balanced regulatory environment towards the crypto sector. She highlighted the adversarial stance of regulatory bodies towards the crypto sector over the past four years and expressed optimism about efforts to shift this approach.
Disclaimer
This article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
Notable Support
Top U.S. military officials have acknowledged Bitcoin's potential as a strategic asset, according to Senator Lummis. This endorsement underscores the growing recognition of Bitcoin's importance not only in the economy but also in global defense.
[1] The Shib Magazine [2] The Shib Daily [3] Senator Cynthia Lummis' Official Website [4] U.S. Senate Committee on Banking, Housing, and Urban Affairs [5] CoinDesk
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