Senator Cynthia Lummis says national Bitcoin reserve is unlikely under Trump

A national Bitcoin reserve is not happening anytime soon. Senator Cynthia Lummis, who has been pushing for the U.S. government to hold Bitcoin, says states will probably act before the federal government does.

“My bets are that you’ll see a state have a Bitcoin strategic reserve before the federal government,” Lummis said at a crypto conference in New York. “States are incubators of innovation.” She pointed to the UAE and sovereign wealth funds in other countries already buying Bitcoin, while the U.S. is still stuck figuring things out.

States reject Bitcoin reserve bills

Lummis and Trump first proposed a Bitcoin stockpile in July 2024 at a crypto event in Nashville. In January, Trump signed an executive order to study the feasibility of a national digital asset reserve, but no action followed.

“But there’s a possibility that some of these things can be begun without statutory authorization,” Lummis said. “So we’ll see what the White House is thinking about that and then we’ll hope to augment it.”

Meanwhile, state governments are already considering their own crypto reserves, but four states—Montana, North Dakota, South Dakota, and Wyoming—have all rejected the idea in the last month. Lawmakers cited volatility and risk as the main reasons for blocking these bills.

Lummis’ own home state, Wyoming, rejected a measure to invest specifically in Bitcoin, with only one representative voting in favor. Despite the failure, strategic crypto reserve bills have been introduced in 24 states so far, according to Bitcoin Laws.

Jennifer Schulp, director of financial regulation studies at the Cato Institute, said lawmakers still see Bitcoin as too unstable. “There’s a well-deserved perception of volatility in terms of Bitcoin and all digital assets,” Schulp said. “I think that’s going to continue to be an issue even as the digital assets environment continues to be a positive one.”

Ohio and Oklahoma move forward

While some states are backing off, others are still trying. In Ohio, new bills have been introduced in both the House and Senate to create a Bitcoin reserve. Chase Herro, co-founder of World Liberty Financial, a DeFi project linked to Trump, is also pushing for a Bitcoin reserve fund.

Andrew Burchill, executive director of the Ohio Blockchain Council, defended the move. “Bitcoin has been the best performing asset over the last decade compared to any traditional investment. If we’re thinking long term, the volatility is less of a risk.”

Meanwhile, Oklahoma is moving ahead. A Bitcoin reserve act just passed the state’s Government Oversight Committee this week. Whether it will gain enough support to become law remains to be seen.

Trump’s Bitcoin reserve idea faces resistance

When Trump first proposed a Bitcoin reserve, he suggested keeping the 200,000 Bitcoin the U.S. already owns from asset seizures. Lummis, however, wants the government to buy 1 million Bitcoin to hold as a strategic reserve.

The problem? Most lawmakers don’t understand Bitcoin. “What we don’t have is enough knowledgeable members of the House and Senate to have the comfort level to do this yet,” Lummis said. “And so that’s where you can come in, literally talk to your senators and representatives. Help them understand that Bitcoin is digital gold.”

Bitcoin has dropped 20% since its all-time high of $109,000 before Trump’s inauguration in January. Lawmakers are hesitant to allocate state funds into such a volatile asset, especially when traditional reserves are stored in low-risk assets like bonds.

In South Dakota, a bill proposing 10% of state funds be allocated to Bitcoin failed in a House vote. Montana’s proposal was also rejected, with 41 lawmakers voting against it and 59 in favor.

Even at the national level, things aren’t moving fast. Schulp said it makes sense for states to take their time. “It makes sense that if on a national level, an administration that is very pro-crypto is taking some time to consider a strategic Bitcoin reserve, states would also be doing the same thing and not jumping in with two feet.”

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