Lummis Says U.S. Could Wipe Out $39 Trillion National Debt by Holding 5% of World’s Bitcoin — Here’s the Timeline

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Sen. Cynthia Lummis (R-Wyo.) said in a Wednesday podcast that the U.S. acquiring more than 5% of Bitcoin’s total supply as a strategic reserve could "erase" the country’s ballooning national debt — now exceeding $39 trillion.

During a conversation with Bitcoin Magazine host Spencer Nichols, Lummis laid out a concrete timeline: purchasing roughly 1 million BTC — about 5% of all Bitcoin that will ever exist — and holding it for 20 years could reduce the national debt by one-third to one-half. “And if we held even more than 5% of the world’s Bitcoin, it could actually erase our debt,” the cryptocurrency-friendly lawmaker added. “This is an important asset in a buy-and-hold strategy.”

Lummis has long championed the BITCOIN Act, a bill that would authorize the U.S. Treasury to acquire 1 million BTC over five years using budget-neutral tools such as Federal Reserve remittances and gold certificate revaluations. While she acknowledged the bill faces an uphill battle in the Senate, she expressed optimism about a companion version introduced in the House by Rep. Nick Begich (R-AK).

According to on-chain analytics firm Arkham, the U.S. government already holds 328,352 BTC, worth approximately $20.29 billion — most of it seized through criminal and civil forfeiture. Bitcoin advocates argue that rotating capital from gold into Bitcoin could generate exponential long-term returns. But critics warn that selling more than 8,000 tonnes of U.S. gold reserves to fund such purchases could depress global gold prices and undermine the credibility of U.S. reserves.

Volatility also remains a central concern. Bitcoin has collapsed roughly 52% from its all-time high of $126,198.07 set in October last year, raising doubts about its reliability as a reserve asset. “It can drive prices higher during accumulation phases while increasing the risk of sharp reversals afterward,” one analyst noted.

Lummis also stressed the need for clear crypto regulation, warning that without it, innovation could migrate overseas. “I refuse to let that keep happening on my watch,” she said. She noted that the Senate is preparing to move forward with cryptocurrency market structure legislation — also called the Clarity Act — as early as July, and pushed back against criticism from traditional finance figures like JPMorgan Chase CEO Jamie Dimon.

Photo: Memory Stockphoto / Shutterstock

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