U.S. Senator Cynthia Lummis has emerged as a strong advocate for Bitcoin, labeling it as 'freedom money' that can serve as a hedge against inflation and economic instability.

In a recent interview, Lummis emphasized Bitcoin's capped supply of 21 million coins, contrasting it with the unlimited printing of U.S. dollars, which she argues diminishes purchasing power.

She believes that Bitcoin's fixed supply is crucial for protecting wealth and could serve as a viable alternative to traditional fiat currency.

To further integrate Bitcoin into the U.S. economy, Lummis has proposed the BITCOIN Act, which aims for the federal government to acquire up to 1 million BTC over the next five years, mirroring the U.S. gold reserve system.

Additionally, Lummis introduced a tax bill designed to eliminate double taxation on small Bitcoin transactions and establish a de minimis threshold for purchases under $300, encouraging broader adoption of the cryptocurrency.

The growing corporate interest in Bitcoin is evident, with companies like MicroStrategy and Marathon Digital reporting significant holdings, marking Bitcoin's transition from a niche asset to a mainstream investment.

Currently, Bitcoin is trading at around $118,000, with a daily trading volume exceeding $104 billion, reflecting robust institutional and global demand.

The upcoming White House crypto policy report, set to be released on July 30, 2025, is anticipated to align with this legislative momentum and may support the establishment of a U.S. Bitcoin reserve.

While skepticism persists regarding these proposals, supporters argue that a diversified national reserve could bolster economic stability.

Analysts suggest that Lummis's advocacy indicates a shift among policymakers towards recognizing Bitcoin's potential as a safeguard against inflation, despite concerns over the implications of government acquisition.

Lummis also pointed out that Bitcoin's scarcity could provide a reliable store of value, particularly benefiting middle to low-income families grappling with rising living costs.

Overall, Lummis's initiatives reflect a growing recognition of Bitcoin's role in addressing economic challenges in the U.S.