Last Tuesday, Congressman Nick Begich from Alaska introduced the BITCOIN Act of 2025 to the U.S. House of Representatives. At the Bitcoin For America summit, he announced his intention to bring the bill forward.
This legislation, a strengthened iteration of a similar bill previously introduced in the Senate by Senator Cynthia Lummis, proposes that the U.S. government acquire 1 million bitcoin as part of a Strategic Bitcoin Reserve. It also seeks to safeguard the right of U.S. citizens to manage their bitcoin independently.
Listening to Congressman Begich discuss this bill at the summit, it struck me that his engagement with Bitcoin was genuine, not merely a reaction to its current popularity in governmental discussions. His knowledge seemed deep and substantial.
My instincts were confirmed; Congressman Begich has been personally managing his own bitcoin for over a dozen years. He truly grasps why it’s essential for Americans to have the freedom to control their digital assets. He argues that in a time characterized by unrestrained bureaucracy and rampant spending, Bitcoin could provide the U.S. financial system with much-needed stability.
Reflecting on when I first recognized Bitcoin’s potential, it was around late 2012. An article on Slashdot.org about Bitcoin and its upcoming halvening caught my attention and fueled my curiosity. I decided to dive deeper into the realm of digital currency. I wired $100 to Mt. Gox and bought seven bitcoins. Fascinated, I transferred them to a private wallet, eager to unravel the mechanics of Bitcoin, especially with my background in software development and two decades in the tech industry before venturing into politics.
So, was this just about satisfying your curiosity?
Indeed, but there was more. Shortly thereafter, I reached out to my business partners, suggesting that Bitcoin might become significant. While they were unfamiliar with it, I informed them I planned to invest $5,000 into Bitcoin. Drawing funds from our software enterprise, I purchased more Bitcoin on Mt. Gox, ultimately amassing 440 bitcoins. When the exchange collapsed, it was disastrous, as all our bitcoins were still held there. However, a group of creditors including myself hired a Japanese lawyer. We successfully petitioned the court, which changed the bankruptcy proceedings from liquidation to civil rehabilitation, enabling creditors to reclaim some of their bitcoins.
Did you manage to recover any of them?
Yes, although I eventually sold our company’s claim to Fortress, I still hold on to my initial seven bitcoins.
What motivated you to introduce The BITCOIN Act recently?
I’ve long believed that the U.S. should maintain a Strategic Bitcoin Reserve. When considering reserve assets, many can be easily produced by a central authority. Bitcoin, like gold, exemplifies the value of scarcity. Scarce assets are crucial as they buffer against fiscal irresponsibility, something not just recent but evident over decades. The government has consistently resorted to printing money to solve issues, inadvertently creating larger problems. The longstanding importance of our gold reserves highlights the necessity of adopting Bitcoin, imposing discipline on our financial system. Given Congress’s history of fiscal indiscipline, keeping the government aligned with constitutional boundaries becomes imperative. A 125% debt-to-GDP ratio isn’t sustainable. Continuing the trend of rampant deficit spending is unrealistic. Both our gold reserves and a potential bitcoin reserve would act as safety nets should our debt-centric monetary system falter.
Do you think The BITCOIN Act has a strong chance of being passed?
I believe the odds are improving, largely because more Congressional members now understand Bitcoin and the precariousness of our debt and deficit situation. Additionally, public awareness about diversifying our strategic reserves with a scarce asset like Bitcoin, beyond just gold, is growing. These factors make it a ripe moment. The increasing number of cosponsors from both the Senate and House is promising. There’s a marked interest from other Congress members eager to learn how this legislation might protect the U.S.
The bill suggests that the government should aim to acquire 1 million bitcoin—equivalent to 5% of the total supply—over five years, consistent with previous bill versions. Why these specific figures?
When comparing central banks’ gold holdings against total gold supply, the figures fall between 5% to 15%. As a reserve asset, this percentage range is sensible. A five-year timeline was chosen to prevent market shocks and volatility. Unlike day trading, the U.S. government requires a strategic, steady, and deliberate approach to asset acquisition, which aligns better with a five-year strategy.
The bill also proposes establishing a proof of reserves system for the U.S. Would this resemble El Salvador’s system with public Bitcoin addresses?
Absolutely. One persistent issue with Fort Knox is the lack of public auditing access, leading to skepticism about our gold holdings. With Bitcoin, we can implement continuous proof of reserves, assuring every American of our Bitcoin holdings’ transparency and integrity.
What might the U.S.’s cold storage for Bitcoin look like?
The bill calls for consulting industry experts to craft these practices and regulations. Yet, based on my Bitcoin experience, using cold storage and thousands of separate wallets is vital. Equally crucial is spreading key pieces across various locations and employing the Shamir backup system, which allows key reconstruction from multiple parts. A single key in one location leaves assets vulnerable, so a diversified key strategy ensures security by necessitating key assembly from multiple sites.
Why is the right to self custody Bitcoin so crucial for U.S. citizens?
Recalling the early 20th-century U.S. gold confiscation under Executive Order 6102, the government effectively seized citizens’ assets. We must avoid a repeat, whether with gold or other assets. Upholding individuals’ right to self custody wealth reaffirms our constitutional rights.
Do you know about the Samourai Wallet and Tornado Cash cases involving Bitcoin and crypto mixers?
I’m aware of mixers generally, although not specifics about Samourai Wallet. Mixers have been around for quite some time.
What are your views on crypto mixers?
The main debate centers around essential versus secondary transaction layers. Bitcoin, as a value store, differs from other cryptocurrencies like Ethereum, which apply transaction restrictions at multiple levels. Imposing such restrictions on Bitcoin’s foundational level contradicts its decentralized nature, which is critical for maintaining its fungibility.
Any closing thoughts?
I’m enthusiastic about this legislation’s prospects and believe it’s crucial for our country. The Bitcoin community’s advocacy will be vital in persuading Congress and the Senate. While Senator Lummis and I, alongside other cosponsors, champion this cause, ongoing education by the Bitcoin community is key to advancing this bill to President Trump’s desk for signature.
