Key Takeaways
- House Financial Services Committee approved the American Reserve Modernization Act with a 28-21 vote
- Legislation mandates a 20-year minimum hold period for government-owned Bitcoin
- Federal holdings currently total approximately 324,527 Bitcoin valued at roughly $24.7 billion
- Transparency provisions include quarterly proof-of-reserve disclosures and independent audits
- Full House and Senate approval still required before presidential signature
Congressional lawmakers advanced significant legislation on Wednesday designed to codify President Donald Trump’s Bitcoin reserve initiative into federal statute.
The American Reserve Modernization Act of 2026 received approval from the House Financial Services Committee through a 28-21 vote. Representative Nicholas Begich originally put forward the proposal in May.
Core Provisions of the Legislation
This proposed law establishes two separate repositories within the Treasury Department: a Strategic Bitcoin Reserve alongside a Digital Asset Stockpile. Both facilities would manage cryptocurrencies obtained via criminal and civil asset forfeiture proceedings.
According to the measure, any Bitcoin placed in the federal reserve system must remain untouched for a minimum two-decade period. Such a timeframe represents an unprecedented long-term approach to government asset management.
Based on data from Arkham Intelligence, federal agencies presently control approximately 324,527 Bitcoin, representing a market value of about $24.7 billion.
The proposal mandates comprehensive reporting from all government departments regarding their digital asset holdings. Accountability mechanisms incorporated into the bill include quarterly proof-of-reserve disclosures alongside independent third-party verification processes.
Additionally, the measure calls for research into fiscally neutral approaches to expanding reserve holdings without burdening American taxpayers. Individual states would gain authorization to deposit their Bitcoin holdings with the Federal Reserve under this framework.
The bill explicitly protects individual Americans’ rights to possess and manage their own cryptocurrency. Private key control is characterized as fundamental to both economic independence and individual freedom.
Divided Congressional Response
Representative Bryan Steil endorsed the measure, contending it would strengthen reserve assets while contributing to deficit reduction efforts. He emphasized the importance of modernizing American reserves to maintain global economic leadership.
Connor Brown, executive director of the Bitcoin Policy Institute, characterized the committee’s decision as a watershed moment for cryptocurrency regulation.
However, opposition emerged from some quarters. Representative Bill Foster rejected the proposal, characterizing Bitcoin as excessively unpredictable and volatile for responsible government investment strategy.
“I don’t think anyone believes that bitcoin is critical to the U.S. economy,” Foster said during the session.
The legislative effort traces back to earlier initiatives. Republicans Begich and Senator Cynthia Lummis originally introduced a predecessor measure known as the BITCOIN Act over twelve months ago.
Path Forward for the Legislation
President Trump’s 2025 executive action created the reserve framework utilizing Bitcoin already in government possession through forfeiture actions. He simultaneously instructed Treasury and Commerce officials to develop cost-neutral acquisition strategies.
Bloomberg reported in July that questions emerged regarding the Treasury Department’s statutory authority to administer such a reserve program.
While the committee approval represents meaningful progress, the legislation must still secure passage in both the complete House of Representatives and the Senate before reaching the president for final approval.
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