The US House Financial Services Committee has approved a bill to establish a strategic federal bitcoin reserve. The document was supported by 28 lawmakers, with 21 opposing.
In May, Republican Nick Begich and Democrat Jared Golden introduced the American Reserve Modernization Act (H.R. 8957). Before the vote, the committee approved an updated version proposed by Republican Bryan Steil.
The bill can now be brought before the full House of Representatives for a vote. It must then pass the Senate and receive the president’s signature.
How the Reserve Will Work
The bill mandates the US Treasury to establish a strategic bitcoin reserve and a separate storage for other digital assets within 180 days.
Federal agencies will need to inventory cryptocurrencies under their control. Bitcoins owned by the government and not allocated for other purposes by law will be transferred to the reserve. This includes coins that have been permanently confiscated unless they need to be returned to victims or used for legally mandated payments.
Other digital assets will be placed in a separate reserve. The Treasury will be able to sell them under pre-approved rules. Proceeds will first cover the management costs of both funds, with any remaining funds used to reduce national debt.
Bitcoins transferred to the reserve will be prohibited from being sold, exchanged, pledged, or otherwise used for 20 years after the law’s enactment.
Two years before this period ends, the Treasury must present Congress with recommendations on the future of the coins. Subsequently, the department may propose selling up to 10% of the reserves during any two-year period, but such a proposal alone will not authorize asset sales.
The reserves will be subject to annual reports with cryptographic proof of coin ownership, independent audits, and oversight by the US Government Accountability Office.
States may voluntarily transfer their bitcoins to the Treasury for storage. The assets will be placed in separate accounts, with ownership rights remaining with the regional authorities.
The document does not allow the government to immediately begin additional purchases. Instead, the Treasury and the Department of Commerce must study ways to replenish the reserve without new taxes, borrowing, or increasing national debt within 180 days.
“This is a sound financial strategy that will strengthen our reserves while helping reduce the deficit. Digital assets continue to change the global market. We must modernize strategic reserves to maintain US leadership and financial stability,” said Steil during the session.
Democrat Bill Foster opposed the initiative back in July. He pointed to the volatility of the leading cryptocurrency and questioned its significance for the US economy.
Changes Before the Vote
The initial draft from May required quarterly public reports on the reserves. The version adopted by the committee replaced this with annual reporting.
The mandatory holding period for assets obtained through forks and airdrops was reduced from five years to one year.
The list of potential ways to replenish the reserve no longer includes revaluation of gold certificates by the Fed, remittance of reserve bank profits, tax and customs revenues, or donations.
The study by the Treasury and the Department of Commerce will focus on using other government crypto assets, confiscations, and joint programs with states, private companies, and foreign partners.
Previously, US President Donald Trump established a strategic bitcoin reserve by executive order on March 6, 2025.
However, the creation of the reserve was delayed by disagreements among federal agencies over the fund’s structure and asset management procedures. For more on why the US initiative has been reduced to storing confiscated bitcoins and which countries have made further progress, read ForkLog’s longread.
