Lummis’ BITCOIN Act Expands U.S. Reserves

CRYPTO
Lummis’ BITCOIN Act Expands U.S. Reserves

Senator Cynthia Lummis has reintroduced the BITCOIN Act in the 119th Congress, allowing the U.S. government to potentially hold over 1 million Bitcoin. The bill directs the government to buy 200,000 BTC annually for five years, funded by reallocating existing federal resources. However, the updated bill permits the U.S. to exceed this amount by acquiring Bitcoin through legal means like forfeitures, gifts, or state contributions to the strategic reserve.

The bill, now co-sponsored by Republican Senators Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno, formalizes Bitcoin’s role in national reserves. It also introduces an evaluation process for forked and airdropped assets, ensuring the reserve retains the most valuable cryptocurrency.

Lummis’ proposal follows President Trump’s executive order to establish a “Strategic Bitcoin Reserve.” The reserve will use confiscated cryptocurrency and budget-neutral methods to grow, reinforcing America’s leadership in financial innovation while addressing national debt.

FINANCE
Summers Warns of Rising Recession Risk

Former Treasury Secretary Larry Summers now sees a near 50% chance of recession, a stark shift from January when it seemed unlikely. He blames economic uncertainty, particularly fluctuating tariffs under President Trump, for throttling markets and stoking recession fears.

In a CNN interview, Summers criticized the administration’s tariff policies, calling them “counterproductive” and warning they have chilled investment while prompting fear-driven spending. Businesses are hesitant to invest but rush to buy supplies before potential tax hikes, creating economic instability.

Speaking to Bloomberg TV, Summers noted a “sea change” in economic expectations, from optimism at Trump’s inauguration to growing recession risks today. While Trump and Treasury Secretary Scott Bessent frame it as a “transition” or “detox,” Summers remains skeptical, comparing it to the failed notion of “transitory” inflation.

With CEOs increasingly pessimistic, Wall Street struggling, and policy uncertainty rising, Summers warns the U.S. may be heading toward a self-inflicted economic downturn.

TECH
Musk’s Politics Worry Tesla Investors

Longtime Tesla bull Dan Ives is losing patience with Elon Musk, urging “tough love” as investor frustration grows. In a rare critical note, the Wedbush analyst warned that Musk’s political involvement and lack of focus on Tesla are damaging the brand. With dealership protests and customers selling their cars, Ives called the coming months a “moment of truth” for Musk and Tesla.

Musk’s recent Fox News appearance and White House visit with Trump did little to reassure investors. Meanwhile, New York lawmakers are urging the state pension fund to divest from Tesla. Ives warned that Musk isn’t “reading the room” and must prioritize Tesla over side ventures like Dogecoin.

Despite Tesla stock rising 3.8% on Tuesday to $230.58, it remains far from its $488.54 high. Ives still rates it “outperform,” predicting $550 in a year—but only if Musk refocuses on Tesla instead of politics and distractions.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.