A morning soundbite from Treasury Secretary Scott Bessent briefly rattled Bitcoin and crypto markets on Thursday before a late-day clarification restored the policy baseline: the United States won’t be sellers, and “budget-neutral” options to grow the country’s bitcoin stockpile remain on the table. Senator Cynthia Lummis swiftly framed the endpoint. “America needs the BITCOIN Act,” she wrote, calling the legislation the operative blueprint for expanding a Strategic Bitcoin Reserve without tapping taxpayers.

In a Fox Business hit that ricocheted across X, Bessent said the government is “not going to be buying” additional bitcoin and added, “We’re going to stop selling that,” referencing a reserve he valued between $15 billion and $20 billion. Markets faded into the statement; by mid-day, bitcoin was off roughly 3.7%. The point that stuck—“we’re not going to be buying”—was clipped and shared widely, but it was only half the story.

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Hours later, Bessent posted a clarifying note. “Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order,” he wrote. “In addition, Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world.’” The course correction aligned his comments with the administration’s March directive and the policy discussion that has matured since.

Bitcoin Act Is Still The Way Forward

Lummis, chair of the Senate Banking Subcommittee on Digital Assets, seized the moment to underline the fiscal constraint. “Secretary Scott Bessent is right: a budget-neutral path to building SBR is the way. We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR. America needs the BITCOIN Act.” In a separate reply to Bessent, she added: “I have a ₿ill for that.”

Her posts also flagged ongoing work “with Scott Bessent & Howard Lutnick to identify budget-neutral ways to continue growing our bitcoin reserve & outpacing adversaries in the race.”

The legal and administrative scaffolding for a Strategic Bitcoin Reserve was set five months ago. On March 6, President Trump signed an executive order creating the SBR and a separate US Digital Asset Stockpile, directing agencies to capitalize the reserve with Bitcoin “finally forfeited” to the government and to develop budget-neutral strategies for further acquisition.

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Lummis’s “BITCOIN Act” would take that framework from executive policy to statute and goes considerably further. The latest text lays out a five-year purchase program authorizing up to 200,000 BTC per year—1,000,000 BTC in total—paired with a 20-year minimum holding period and a quarterly, public cryptographic proof-of-reserves regime.

Where Bessent’s remarks intersect—and diverge—with that legislative ambition is gold. In March, he downplayed a formal revaluation of US gold as a credible budget lever, even as the broader policy conversation around the asset side of the federal balance sheet intensified. On Thursday, Bessent told Fox Business that a gold revaluation is “unlikely.” Lummis, by contrast, is explicitly proposing to mark gold to market in order to seed the SBR without new borrowing—an idea that has migrated from think-piece fodder to bill text but still faces macro, legal, and central-bank-independence scrutiny.

The bottom line is that Thursday did not mark a policy reversal so much as a restatement of sequencing. The executive branch will build the Strategic Bitcoin Reserve first with finally forfeited coins and, per Bessent’s clarification, is actively evaluating budget-neutral ways to expand it.

At press time, BTC traded at $118,751.

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According to a Wyoming lawmaker’s recent Fox Business interview, Bitcoin can help people protect their savings from rising prices.

Senator Cynthia Lummis pointed out that the digital token does not depend on any central bank or government. This view comes at a time when many Americans feel the pinch of higher living costs and a weaker dollar.

Decentralized Money Option

Based on reports, Lummis highlighted Bitcoin’s open ledger and hard cap of 21 million coins. She explained that these features give holders clear visibility and predictable supply.

She said average families are looking for ways to stretch their budgets. Bitcoin’s model, she argued, could offer a fresh path when everyday expenses climb.

Sen. Cynthia Lummis is shown during a Fox Business interview. Source: Fox Business.

Market Numbers Reflect Growing Demand

Bitcoin’s price is nearing the $118,000 after slipping 1.41% over the past day. Trading volume reached over $100 billion, a jump of more than 35% in 24 hours.

According to data from crypto exchanges, this busy activity shows more people watching Bitcoin closely. Lummis noted that as institutions and global investors lean in, demand tends to rise—and that can support price growth.

Rising Institutional Interest

Based on figures cited by the senator, hedge funds and big banks have slowly added Bitcoin to their balance sheets. She said this trend underlines the token’s shift from niche asset to mainstream holding.

It’s a far cry from Bitcoin’s early days, when only a handful of tech enthusiasts paid attention. Today, Wall Street analysts include BTC price forecasts in their quarterly outlooks.

Policy Push Aims To Simplify Crypto Taxes

Lummis used her time on Capitol Hill to roll out a plan that would stop small crypto trades from getting hit with two layers of tax.

The proposed de minimis rule would exempt transactions under $300. The bill has backing from US President Donald Trump’s team, which signaled support for easing rules on micro‑trades. Lummis said this change could clear the path for people who buy basic commodities with Bitcoin.

Lawmaker’s Broader Vision

The senator is also sponsoring the BITCOIN Act, a measure that would have the US buy up to 1  million BTC over five years.

Critics worry about putting so much of the digital token on government books. Supporters say it would create a national reserve and show confidence in a new form of money.

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Today, Senator Ramis announced a bill that will allow US citizens to spend up to $300 worth of Bitcoin on goods and services on the $5,000 limit each year.

The proposed law also provides that spending thresholds will be adjusted for inflation from 2026.

Such provisions were initially conceptualized as amendments that Senator Lumith promoted to include in one big beautiful bill (OBBB), but they were not.

Senate Finance Committee Chairman Mike Krapo said Senator Ramis is working on tax reform laws on Bitcoin investment after he failed to give Senator Ramis’ amendments to vote at the OBBB’s marathon amendment meeting earlier this week.

The bill she released this morning was proof that she was true to what she said – it should be acknowledged and appreciated.

However, details about the minimum exemptions for Bitcoin spending were met with legitimate critiques.

Trey Walsh, founder of Progressive Bitcoiner and contributor to Bitcoin Magazine, said on X “the thresholds are very low” and “there should be no caps on products and services.”

“Making it about spending/payments. This is suitable for consumers,” Walsh added.

“You are not taxed on your money (dollars) on your spending. You should not be taxed on your money (bitcoin) for your spending either.”

Zach Herbert, founder of Foundation Devices, expressed his dissatisfaction with the bill in lesser terms.

Nick Anthony, a policy analyst at the Cato Institute’s Financial and Financial Alternatives Center, proposed an alternative to spending thresholds for purchases.

Personally, I can live with a certain spending cap, but I feel that these should be substantially larger.

We hope that the De Minimis exemption will be applied to bring the annual threshold up to $600 (the original Lummis proposed for the OBBB amendment) and $25,000 annually.

Now you might think of certain John Lennon lyrics.

“You might say I’m a dreamer…”

But that line guarantees that many other prominent voices in the Bitcoin space are also being told to ask that Bitcoin spending bill provisions are more important.

“…But I’m not the only one.”

So, if we agree where we came from, perhaps some of you will join us in politely speaking up to require Senator Ramis to consider increasing the bill’s spending threshold. We also express your gratitude for your commitment to moving forward by creating bills that treat Bitcoin as a medium of exchange.

This article is a take. The opinions expressed are entirely the authors and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.

Senator Cynthia Lummis revealed on June 30 that she would introduce an amendment to add crypto tax language to the “One Big Beautiful Bill” (OBBB) amid pushes from crypto advocates in the same direction.

Lummis posted on X that she is drafting an OBBB amendment “to ensure Americans can use digital assets without fear of tax violations.” She added: 

“For years, miners and stakers have been taxed TWICE. Once when they receive block rewards and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.” 

The proposal revives earlier bipartisan efforts to exempt small gains on everyday transactions. 

Matthew Pine, executive director of the Bitcoin Policy Institute, asked supporters to email or call senators and request “a narrowly tailored Bitcoin de minimis tax exemption.” 

According to Pine’s suggested script, the current rules require users to compute capital gains on minor purchases, a record-keeping burden that “discourages fair compliance and everyday adoption.”

Timing of taxation for block rewards

Dennis Porter, chief executive of the Satoshi Action Fund, focused his outreach on mining and proof-of-stake earnings. 

He told callers to explain that those rewards “are taxed once as ordinary income when they’re created, then again as capital gains when they’re sold.” 

Porter’s proposed fix would tax rewards only at disposition, aligning them with self-generated property such as farm produce. 

Colin McLaren of the Solana Policy Institute echoed the appeal, stating that Congress and the Senate Finance Committee “need to clarify key digital asset tax issues around staking” and should incorporate Lummis’s language to “unlock the future of innovation.”

Lobbying coordination intensifies

Cody Carbone, CEO of the Digital Chamber lobbying group, amplified the message in a post.

He said that taxes on block and staking rewards should be applied at sale instead of creation, adding that legislation should treat these rewards as “created property.”

Carbone’s call added the Digital Chamber’s membership to a coalition that now includes Bitcoin policy advocates, proof-of-stake supporters, and general crypto trade groups. All scripts emphasize courtesy and brevity when speaking with congressional offices.

Supporters view this week’s committee negotiations as a narrow window to attach digital asset provisions before the bill reaches the Senate floor. 

They argue that the combined de minimis exemption and block reward timing fix would streamline individual reporting, reduce compliance costs, and keep validation activity in the US. 

Senate staff have not released the draft text, and negotiators have not indicated whether the two issues will be advanced together or separately.

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United States Senator Cynthia Lummis (R-Wyo.) says elements of the nation’s uniformed leadership are now “big supporters” of plans to build a Strategic Bitcoin Reserve (SBR), marking the first time a sitting law-maker has publicly claimed high-level military backing for the project.

Bitcoin Reserve Gains Military Support

“There are generals, especially in Southeast Asia, who believe it is important to have strategic Bitcoin stockpiles, because we are in an economic war with China,” Lummis told Bloomberg Television late Tuesday. “All we need to do is look to the leadership of the current US military to find support for a Strategic Bitcoin Reserve.”

Lummis reiterated her plan to accumulate 1 million BTC — roughly 5 percent of the supply — and hold it for twenty years. “My purpose is to… illuminate half of the US debt,” she said. The senator’s first funding tranche would rely on Bitcoin already in federal custody: “The place to start is to use the money held by the US Marshals Service… asset-forfeiture monies in the form of digital assets. That can be the basis for year one of a strategic Bitcoin reserve.”

Lummis’ remarks land two months after President Donald Trump issued Executive Order 14233, creating a SBR capitalised with all BTC forfeited in federal cases and instructing agencies to transfer their holdings to Treasury-run cold wallets.

The House and Senate are now considering companion “BITCOIN Act” bills that would codify the reserve in statute and authorise Treasury to purchase additional coins with “no incremental cost to taxpayers.” Even so, Lummis conceded legislation to expand or finance the reserve directly is unlikely to surface this session.

“I don’t think we’re going to get to this bill in 2025, because our next priority is market-structure,” she said, referring to the looming fight over jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Responding to concerns that a BTC build-up might displace bullion, Lummis stressed she has “never proposed selling any of our gold or hard assets.” Instead she would re-value Treasury’s 1934-vintage gold certificates at fair-market prices and swap the accounting uplift into BTC: “convert[ing] our gold certificates to current fair-market value and use those to convert to Bitcoin.”

Asked about JPMorgan Chase chief Jamie Dimon’s call for Washington to hoard “bullets, drones and rare earths” instead of BTC, the senator fired back: “Even the United States military disagrees with him… We have to prepare for a guns-and-bullets war, but we need both.”

Notably, Lummis wants the reserve to be Bitcoin-only. “Bitcoin is based on proof-of-work,” she argued, indicating no appetite to diversify into proof-of-stake assets or stablecoins at the sovereign-reserve level.

At press time, BTC traded at $105,494.

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Wisconsin Senator Ron Johnson says that America’s aggressive spending could result in a total collapse of the social system.

In a new interview with Tucker Carlson, Johnson says that there may be a time when those living on social benefits will be left out to dry if the government can no longer afford to fund its extensive welfare state while also running massive deficits.

Says Johnson,

“If you’re living on different transfer payments or different types of welfare benefits, you may not get those. You can’t borrow more money, so you’re going to have to take what money we spend on other government programs, and we’ll have to service our debt. You have to pay it off, unless we want to go into full default… Which means you’ll never float more debt, so other than print more money, which creates even more hyperinflation…

We will lose our position as the world’s reserve currency, and we’ll lose our ability to print dollars that people accept. It’s a marvelous thing that we just print dollars, we can send them overseas, people will produce products and ship them over here, high-quality products at a pretty low cost. That’s one of the reasons we’ve been able to keep inflation in check, producing all these massive deficits over the last couple of decades, because we do import a lot of products. 

We’ve got billions of people that are either un or under-employed around the world, we provide the capital, they produce the factories, they produce the goods, we just give them paper. It’s fiat currency, we print it, we keep printing it, and it’s been working out pretty well. At some point in time, that gravy train might stop.”

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Senator Bill Hagerty (R-TN) says that one segment of the crypto industry will likely become the largest holders of US Treasuries.

In a new interview on CNBC Television, Hagerty says stablecoin issuers will likely purchase massive amounts of US Treasuries as reserve funds to ensure the digital assets remain pegged to the dollar.

Says Hagerty,

“Stablecoin issuers will be the largest holders of US Treasuries in the world.”

Hagerty introduced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish federal regulations around the use of stablecoins. The bill is currently being debated by Congress.

Asked what will back stablecoins, Hagerty says,

“It’s not going to be equities. It’s going to be high quality short-term assets, either short-term US Treasuries or cash. I think the majority of it will be US Treasuries.”

On Monday, Hagerty celebrated the bill moving closer to becoming law.

“Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century. The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will ensure US dollar dominance. Customers will be protected, the demand for US Treasuries will balloon to the tune of more than $1 trillion, and innovation in the digital asset space will thrive in the United States going forward. I look forward to making history with my colleagues this week.”

The potential legislation would require stablecoin issuers to maintain backing for their assets on a 1:1 ratio. The bill also states that stablecoin issuer reserves can be made up of US currency; funds held as demand deposits or insured shares at an insured depository institution; and Treasury bills, notes or bonds.

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