The U.S. gross national debt surpassed $39 trillion in mid-March, with debt held by the public exceeding $31 trillion, according to government figures. The mounting obligations are renewing debate over long-term fiscal sustainability and, among crypto advocates, strengthening the case for bitcoin as a hedge against monetary expansion.
Debt Tops $39 Trillion
Gross national debt, which includes both debt held by the public and intragovernmental holdings, crossed the $39 trillion mark in March. Debt held by the public — a key gauge tracked by markets because it excludes intragovernmental balances such as trust funds — stood above $31 trillion.
The increase reflects persistent budget deficits and higher interest costs as the Federal Reserve’s rate hikes filter through to Treasury borrowing. Elevated issuance has kept attention on the United States’ fiscal trajectory and its implications for growth, inflation, and financial markets.
CBO Projects Trillion-Dollar Deficits
The Congressional Budget Office (CBO) projects a federal budget shortfall of about $1.9 trillion in fiscal year 2026. In its outlook, the CBO also estimates that debt held by the public could rise to roughly $56 trillion by 2036, assuming current laws remain in place and trends persist.
Longer-term pressures include an aging population, higher interest expenses on outstanding debt, and mandatory spending growth. Without policy changes that raise revenue or reduce expenditures, the nonpartisan budget office expects deficits to remain near or above the trillion-dollar level for years.
Lummis Promotes BITCOIN Act
Against this backdrop, Sen. Cynthia Lummis (R-Wyo.), a longtime bitcoin advocate and co-author of prior comprehensive crypto legislation, is promoting a proposed measure referred to as the BITCOIN Act. Details of the proposal were not provided in the materials reviewed, but the effort underscores growing interest in digital assets among some lawmakers as fiscal and monetary challenges intensify.
Why It Matters for Crypto
Bitcoin, the largest cryptocurrency by market value, has a fixed supply of 21 million coins, a characteristic supporters argue makes it resistant to inflationary policies. Advocates contend that sustained deficits and rising debt levels could bolster demand for scarce assets, including bitcoin. Critics counter that bitcoin’s price remains volatile and that fiscal policy challenges are best addressed through budget reforms rather than asset allocation shifts.
With federal borrowing costs elevated and deficits projected to persist, the policy debate around fiscal sustainability — and whether alternative assets play a role in portfolios — is likely to remain central for both traditional markets and the digital asset sector.