The U.S. government is preparing to buy 1 million Bitcoin, roughly 5% of the total BTC supply, in what could be the biggest financial shift involving digital assets.

Congressman Nick Begich announced the Bitcoin Act , a federal initiative to establish a strategic Bitcoin reserve, ensuring the U.S. secures a dominant position in the crypto space.

"The Bitcoin Act establishes a strategic Bitcoin reserve to fortify national security and provide economic stability," Begich said.

The bill proposes a five-year phased acquisition of BTC, leveraging Federal Reserve remittances, gold revaluations, and the Exchange Stabilization Fund, ensuring no taxpayer dollars are spent.

Crypto influencer WendyO reacted to the news, calling it "absolutely crazy." She pointed out that while the U.S. government’s plan might be bullish for Bitcoin in the long term, it also raised major concerns.

"We are in debt. We feel like we are in a recession. We cannot afford to buy a finite asset," she said. "Even though Bitcoin does seem to increase in value over time, it’s still a bit risky considering how most Americans are living."

WendyO noted that previous government Bitcoin sales, such as those from Silk Road seizures, had cost taxpayers billions of dollars due to premature selling.

"The Bitcoin that has been confiscated in the past has cost American taxpayers about $17 billion because they sold it prematurely," she noted.

However, she acknowledged that the proof-of-reserve requirement in the Bitcoin Act could be a game changer for transparency in government-held digital assets.

"This means everyone can track the U.S. government's Bitcoin holdings in real-time. You can't do that with gold," WendyO said.

The bill also explicitly protects private Bitcoin ownership, ensuring Americans can still self-custody their BTC.

"A lot of people were worried that this bill would force Americans to hold Bitcoin through the government instead of holding it themselves. That’s not happening, which is a good thing," she said.

With Trump’s executive order already in place, multiple countries are rumored to be considering their own Bitcoin reserves, potentially kicking off a global race for BTC accumulation.

"Other governments are paying attention. The U.S. buying Bitcoin could push prices up, and now we’re seeing other countries looking to acquire it too," WendyO said.

If the Bitcoin Act passes, the U.S. will hold BTC as part of its national reserve alongside gold, marking a historic shift in financial policy.