Senator Cynthia Lummis, who leads the Senate Subcommittee on Digital Assets, says the US military backs a plan to create a Strategic Bitcoin Reserve. Jamie Dimon, the CEO of a major bank, recently called that plan a waste. Lummis pushed back.
Lummis told Bloomberg the military thinks having Bitcoin on hand matters. She said it could be a tool in the economic contest with China. Some see that as a bold step, while others say it’s risky.
According to the senator, military leaders believe Bitcoin could help in an economic showdown. They see it as a way to hold value if traditional assets are affected by sanctions or significant actions from other nations. She spoke about weapons and ammunition as part of national security, but added that a Bitcoin reserve is also vital.
Some military voices have warned that future conflicts won’t just be fought on battlefields. Money and digital assets could play a key role too.
Based on reports, Lummis introduced a bill to have the US buy and hold 1 million BTC, mirroring what countries do with gold. The idea is to draw funds from the Treasury or Federal Reserve rather than using new budget money. However, it has not advanced far in Congress.
US President Donald Trump issued an order on March 6, 2025, to establish a Bitcoin reserve along with a digital asset stockpile for other coins. He stated the government would use assets seized in civil and criminal actions to start the fund, which could include around 200,000 BTC already held by the government.
Lummis unveiled a proprietary model forecasting a dramatic rise in Bitcoin’s price over the next decade, citing factors such as its fixed supply, growing institutional adoption, and expanding network effects. Analysts caution that such long-term forecasts depend on unpredictable factors like regulatory shifts, technological breakthroughs, and market sentiment, any of which could derail even the most optimistic projections.
She also praised Trump for advocating simple rules for crypto and for incorporating digital coins into national strategy. Trump’s family operates a DeFi platform, a stablecoin project, and even some meme coins. Lummis believes everyone will eventually enter the crypto economy.
However, Jamie Dimon disagrees, calling the Bitcoin reserve a waste of resources. Other experts express concerns about Bitcoin’s volatility, arguing that a strategic reserve shouldn’t rely on something that can fluctuate by 20% in a single day. Some economists at top universities do not support borrowing money to build a crypto stash, arguing it doesn’t make sense given the US’s nearly $36 trillion national debt.
For now, the bill to buy 1 million BTC remains in committee.
