No joke, Senator Cynthia Lummis just dropped the wildest plan we’ve seen so far. She has a vision to reverse the soaring U.S. national debt by smartly purchasing and hodling Bitcoin. Lummis suggests accumulating 1 million Bitcoin, roughly 5% of the total global supply, and maintaining the holdings for 20 years. She thinks this would save enough to cut the national debt in half. Her strategy is underpinned by financial models showing Bitcoin’s promise as a long-term asset for national fiscal policy.

Lummis has been one of the loudest advocates in favor of placing Bitcoin into the U.S. financial infrastructure. She contends that the historic run up in the money supply has had disastrous effects on the value of the U.S. dollar. Integrating Bitcoin into the country's financial framework could significantly complement broader efforts to reduce the national debt, according to Lummis.

The BITCOIN Act

In July 2024, Lummis rolled out a highly technical bill, the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act. The legislation would create a decentralized network of secure Bitcoin vaults operated by the U.S. Department of the Treasury. The goal of this network would be to pretty snag one million Bitcoin.

Lummis has re-upped the proposal to have the U.S. government mine 200,000 Bitcoin a year for five years. This purchase of national assets is meant to pay down the shit-crazily ballooning national debt. She imagines that if we each held 1 Bitcoin for 20 years it would help the U.S. pay off its accumulated debt in half that time.

Yet Lummis has repeatedly underscored that the success of this Bitcoin-backed approach depends on a Congress willing to be fiscally responsible. She reiterated the imperative to bring U.S. revenues in line with spending. She’s a strong proponent of policies that prioritize long-term economic stability over short-term gain.

Bitcoin as a Financial Tool

Lummis intends for Bitcoin to provide a sounder option for those seeking long-term financial freedom. She mourned the draconian fiscal choices taken during the COVID-19 pandemic. In doing so, the U.S. printed more money over the course of those 22 months than we had throughout the entire history of our country up until that point.

She’s even expressed her affection for the crypto community before, pasting on the crypto-friendly and universally understood laser eye meme. Additionally, Lummis praised the proper framing of Melania Trump's meme coin as an example of how to market an asset for entertainment purposes rather than as a serious financial investment.

If any one individual can be credited for ensuring a Bitcoin seat at the establishment financial table, it’s Lummis.

Looking Ahead

Senator Lummis’s proposal takes a deeply strategic approach based on sophisticated financial models. These models highlight Bitcoin’s potential to become an important long-term asset for national fiscal policy as well. If the plan were adopted, the U.S. would be well-positioned to cut its national debt in half during the next decade.

Lummis’s proposal is a welcome introduction to a bigger conversation that should be happening about innovative financial strategies. Second, it indicates the promise of digital assets to help solve our economic issues.