US Lawmakers Advance Bill to Formalize Bitcoin Reserve Policy
Vexoda Newsroom
A new bill advancing through the US House Committee on Financial Services aims to legally establish a strategic Bitcoin reserve, mandating long-term holding and transparency for forfeited digital asse
US lawmakers have taken a significant procedural step towards codifying a national strategy for managing confiscated Bitcoin. The American Reserve Modernization Act of 2026 (H.R. 8957) successfully passed the House Committee on Financial Services following a 28-21 vote. This legislation seeks to create a formal Strategic Bitcoin Reserve and a separate Digital Asset Stockpile within the Treasury Department, consolidating digital currencies acquired through legal forfeitures.
The proposed bill specifically targets the management of Bitcoin and other digital assets obtained by the federal government through civil or criminal legal proceedings. Proponents argue this move is crucial for secure and consistent custody, addressing concerns raised by Representative Nicholas Begich about the "fragmented and inconsistent" current storage methods and the associated cybersecurity risks. The legislation aims to provide a clear accounting of federally held digital assets.
Currently, the US government is estimated to hold a substantial amount of Bitcoin, reportedly around 324,527 BTC, valued at approximately $24.7 billion based on recent market prices. The American Reserve Modernization Act mandates that any Bitcoin designated for the Strategic Bitcoin Reserve must be held for a minimum duration of 20 years, ensuring a long-term approach to its management rather than short-term liquidation.
Beyond the holding period, the bill introduces stringent transparency and accountability measures. It requires all federal agencies to provide a comprehensive inventory of digital assets they control. Furthermore, it mandates the publication of quarterly "proof of reserve" reports and necessitates third-party audits to verify holdings. The legislation also proposes exploring budget-neutral strategies for potentially expanding this reserve in the future.
The market reaction to such legislative developments, while not always immediate, is generally viewed as positive for Bitcoin's long-term integration into traditional financial and governmental frameworks. By addressing security, transparency, and long-term holding, the bill aims to legitimize Bitcoin as a formal asset class. The affirmation of private ownership and self-custody rights within the bill also resonates with the core principles of the cryptocurrency community.
The passage of H.R. 8957 through the committee is a crucial milestone, but the bill still faces further legislative hurdles. It must now be debated and approved by the full House of Representatives and subsequently by the Senate. Should it successfully navigate both chambers and be signed into law by the President, it would represent a landmark development in how the US government officially manages and reserves Bitcoin.
Traders and observers should closely monitor the progress of the American Reserve Modernization Act through Congress. Key aspects to watch include any amendments proposed during floor debates in the House and Senate, the final voting outcomes, and the potential impact on market sentiment. The eventual implementation of such a policy could influence how other nations approach the management of forfeited digital assets and the broader regulatory landscape for cryptocurrencies.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.