Bitcoin Act of 2025

Bitcoin in Congress: Progress, Politics, and the Long Road to Legitimacy

In March 2025, Senator Cynthia Lummis (R-WY) introduced the BITCOIN Act of 2025 (S.954)—a bold legislative proposal aimed at integrating Bitcoin into the U.S. financial framework. For crypto advocates, it’s a milestone. For skeptics, it’s another headline. And for those of us in the business of crypto education and risk management, it’s a signal: Washington is finally taking Bitcoin seriously, albeit cautiously.

But what does “progress” really look like in Congress? And how should professionals, educators, and investors interpret the slow churn of crypto legislation?

Let’s look at  the BITCOIN Act, its implications, and the broader political landscape shaping Bitcoin’s future in the United States.

The BITCOIN Act: What’s Inside

The BITCOIN Act isn’t just symbolic it’s substantive. The bill proposes:

• A Strategic Bitcoin Reserve: The U.S. Treasury would be authorized to hold Bitcoin as part of its strategic assets, akin to gold. This would mark a historic shift in how digital assets are viewed at the federal level.

• Tax Relief for Everyday Use: Crypto transactions under $300 would be exempt from capital gains tax, encouraging practical use of Bitcoin for payments and remittances.  

• Deferred Taxation for Miners and Stakers: Income from mining and staking would be taxed only upon sale, aligning crypto with traditional asset treatment and easing compliance burdens.  

• Wash Sale Rule Enforcement: The bill closes a loophole that allowed crypto holders to harvest tax losses without waiting 30 days to repurchase the same asset—bringing crypto in line with securities law.

These provisions reflect a nuanced understanding of crypto’s unique challenges and opportunities. They also signal a shift from reactive regulation to proactive policy design.

Legislative Reality Check

Despite its ambition, the BITCOIN Act faces steep odds. As of September 2025, the bill remains in the Senate Committee on Banking, Housing, and Urban Affairs. It has not yet been scheduled for hearings, markup, or floor debate.

GovTrack currently gives it a 1% chance of enactment—a sobering reminder that most bills, especially those involving emerging technologies, die quietly in committee. Why the low odds? Several factors:

• Partisan Gridlock: Crypto remains a politically divisive issue. While some Republicans champion it as a tool for financial freedom, many Democrats remain skeptical, citing consumer protection and environmental concerns.  

• Regulatory Turf Wars: The SEC, CFTC, Treasury, and Federal Reserve all have overlapping claims on crypto oversight. Until Congress resolves these jurisdictional conflicts, comprehensive legislation will struggle to gain traction.  

• Public Perception: Bitcoin’s association with volatility, scams, and speculative trading continues to cloud its reputation. Lawmakers are wary of appearing too friendly to an industry still viewed by many as risky or opaque.

Why This Still Matters

Even if the BITCOIN Act never becomes law, its introduction is meaningful. It reflects growing legislative literacy around crypto and a willingness to engage with its complexities. For educators, financial professionals, and crypto-native entrepreneurs, this is a teachable moment.

Here’s why:

• Policy Signals Shape Markets: The mere existence of the bill influences investor sentiment, institutional strategy, and regulatory tone. It’s a signal that Bitcoin is no longer fringe—it’s being debated at the highest levels of government.  

• Curriculum Relevance: For platforms like Crypto Codger College, this is prime content. Students need to understand not just how wallets work, but how laws evolve. A module on “Crypto in Congress” could demystify the legislative process and empower learners to engage with policy critically.  

• Risk Awareness: The wash sale provision alone is a wake-up call. Many crypto holders have relied on aggressive tax-loss harvesting strategies. If this bill—or a future version—passes, those tactics could become liabilities.

Strategic Takeaways for Professionals

For financial advisors, educators, and crypto strategists, here’s how to stay ahead:

• 1. Track Legislative Momentum: Monitor bills like the BITCOIN Act, but also keep an eye on broader regulatory frameworks. The Lummis-Gillibrand Responsible Financial Innovation Act and the Digital Asset Anti-Money Laundering Act are also in play.  

• 2. Educate on Tax Implications: Use this moment to clarify crypto tax rules for clients and students. Highlight the potential changes and encourage proactive compliance. 

• 3. Frame Crypto as Policy-Relevant: Position Bitcoin not just as an investment, but as a policy issue. This reframing helps bridge the gap between crypto and traditional finance, making it more palatable to skeptical audiences.  

• 4. Prepare for Regulation by Design: The era of regulatory ambiguity is ending. Future laws will be more precise, and professionals must be ready to adapt workflows, disclosures, and risk protocols accordingly.

Final Thoughts

Bitcoin’s journey through Congress is slow, uncertain, and often frustrating. But it’s also inevitable. As digital assets become more embedded in global finance, lawmakers will be forced to engage—whether through strategic reserves, tax reform, or consumer protections. For those of us building the future of crypto education, this is an opportunity. Not to predict the outcome, but to prepare learners for the process. Because in crypto, as in politics, understanding the rules is half the battle.