US government mulls plan to purchase Bitcoin - Coinfea

United States Senator Cynthia Lummis hinted that the US government could purchase Bitcoin soon. Taking to X, the Senator commented, “₿ig things coming for Franklin,” posting a cartoon image of the famous anthropomorphic turtle on a laptop labelled with Bitcoin and other tokens.

ContentsUsers are divided over the United States potentially purchasing BitcoinTexas confirms BTC acquisition amid criticismLately, Franklin, the Turtle memes have been associated with the American government after US Secretary of Defense Pete Hegseth shared an image of Franklin firing an RPG from a helicopter, labeled as a spoof book called Franklin Targets Narco Terrorists. For years, Senator Lummis has been one of Washington’s most vocal supporters of Bitcoin, frequently arguing that Bitcoin offers long-term fiscal stability in contrast to the ballooning US debt.

Users are divided over the United States potentially purchasing Bitcoin

In the past, Senator Lummis had previously pushed for clearer regulatory frameworks and for federal agencies to treat Bitcoin as a strategic asset rather than a speculative instrument. In response to Lummis’ post, users on X shared that any government-backed Bitcoin purchases would need to be aware of the risks in the asset’s minimal oversight and extreme volatility.

Other users commended the effort, noting that the treasury is diversifying into Bitcoin, highlighting that it is a legendary pivot. In addition, some users argued that if Washington moves to classify Bitcoin as part of its strategic reserves, G20 central banks would face a “Nakamoto Dilemma,” which means they would no longer be able to avoid holding it while the US accumulates.

A commenter, Loco Riyad, also noted that the senator’s teasing of the possibility of federal Bitcoin holdings is a significant macro-level development. Government accumulation would elevate BTC into strategic-reserve territory and intensify supply dynamics. It also points to a policymaking environment that’s increasingly pro-Bitcoin. Meanwhile, Texas is making progress in terms of BTC accumulation.

Texas confirms BTC acquisition amid criticism

Texas officials confirmed on Monday that the state acquired nearly $5 million in Bitcoin through an exchange-traded fund managed by BlackRock. A few months ago, Texas Gov. Abbott approved Senate Bill 21, a heavily discussed and divisive bill that allowed the state to establish a taxpayer-funded strategic cryptocurrency reserve. The transaction stands out as one of the first of its kind by a state government.

It is also coming at a time when both federal and state officials are showing greater openness to the growing cryptocurrency market. States such as New Hampshire and Arizona have introduced their own crypto reserve frameworks through recent bills. Despite the enthusiasm, critics argue that using taxpayer funds to buy Bitcoin exposes states to unpredictable financial swings.

Opponents of the Texas bill warned during legislative debates that Bitcoin’s volatility could jeopardize public coffers if the market were to turn sharply downward. Others questioned whether government involvement distorts private markets or undermines the principles of decentralization that underlie cryptocurrencies in the first place. Still, supporters counter that long-term scarcity and increasing institutional adoption outweigh short-term fluctuations.