US Senator Cynthia Lummis has introduced a legislative proposal. This proposal would see the United States government purchase one million Bitcoin. On May 2, 2025, Senator Lummis publicly confirmed that former President Donald Trump is supporting the bill. This announcement has sent ripples through both political and financial communities. The initiative, called the BITCOIN Act, aims to use Bitcoin as a strategic financial asset and economic strategy for the United States.
Lummis, long known for her pro-crypto stance, has argued in favor of adopting Bitcoin at a national level. According to her, Bitcoin could serve as a long-term solution to the country’s $36 trillion debt. Her legislative strategy proposes that the fixed supply and decentralized nature of Bitcoin could act as a hedge against inflation. Not only this, but it could serve as a reserve alternative to traditional monetary assets. With Trump’s endorsement, the bill is expected to gain approval among conservative lawmakers. Since Trump’s election, lawmakers have shown interest in using crypto assets as tools for economic independence.
If passed, this would be the largest public acquisition of crypto in history, giving the US government power in the Bitcoin market. Moreover, market analysts are already predicting the effects the purchase will have on the crypto industry. Institutional investors have taken notice as well, with several predicting increased volatility and upward pressure on Bitcoin’s price.
Fed Policy Uncertainty Clashes With Bitcoin Momentum
The Trump-backed Bitcoin bill arrives amid renewed focus on US monetary policy. On Friday, Trump also publicly pressured the Federal Reserve to cut interest rates. However, the April employment data, released shortly after his remarks, has complicated the Fed’s policy path. According to Nick Timiraos of the Wall Street Journal, the chances of a rate cut in June have reduced.
The next Federal Open Market Committee meeting is scheduled for May 6–7, with market consensus showing that the central bank will maintain rates at their current level of 4.25% to 4.5%. With only one more jobs report expected before the June 18 meeting, the window that might prompt a rate cut is decreasing. The April report showed non-farm payrolls rising by 177,000.
Crypto and Traditional Markets on a Collision Course
The development in crypto legislation and traditional monetary policy shows the gap in the Federal Reserve’s economic decisions. With Trump backing the crypto investment initiative, the market is becoming unstable. Pressuring the Fed for lower interest rates makes the future of American financial strategy unpredictable. As the Bitcoin bill advances and the Fed holds its current stance, markets will watch closely for signs indicating the future direction of policy.
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