The U.S. House of Representatives today released the full text of legislation that would establish a federal Strategic Bitcoin Reserve, offering the clearest picture yet of how lawmakers envision the government managing Bitcoin holdings.
Introduced by Representative Nick Begich on May 21, the American Reserve Modernization Act of 2026 (H.R. 8957) would create a dedicated Bitcoin reserve within the Treasury Department, separate from a broader stockpile for other digital assets. The bill lays out custody standards, transparency requirements, restrictions on sales, and potential pathways for expanding government Bitcoin holdings.
The legislation arrives as policymakers continue debating the role of digital assets in federal financial strategy and whether Bitcoin should be treated similarly to traditional reserve assets such as gold.
Treasury would establish a Strategic Bitcoin Reserve
Under the proposal, the Treasury Department would have 180 days after enactment to create a secure storage facility known as the Strategic Bitcoin Reserve. The reserve would hold “qualifying Bitcoin” acquired by the federal government, primarily through forfeiture proceedings, penalties, and settlements.
The bill also creates a separate Digital Asset Stockpile for non-Bitcoin digital assets held by federal agencies. Treasury would be authorized to manage those assets and could sell or convert them, with proceeds directed either toward increasing Bitcoin holdings or reducing the national debt.
All federal agencies would be required to provide a complete accounting of their digital asset holdings within 60 days of enactment. Once the reserve becomes operational, those assets would be transferred to Treasury-controlled custody.
Bill proposes a 20-year Bitcoin holding requirement
One of the most notable provisions is a long-term holding mandate for Bitcoin held in the reserve.
The legislation would prohibit the government from selling, swapping, auctioning, or otherwise disposing of Bitcoin stored in the reserve for at least 20 years. After that period, Treasury could recommend selling up to 10% of reserve assets during any two years, subject to congressional oversight and consideration of market impacts, national debt implications, and financial stability concerns.
The proposal also requires Treasury to study circumstances under which early sales might be justified, including national security or financial stability emergencies.
Proof-of-reserve reporting becomes a legal requirement
The bill would require the Treasury to establish a public proof-of-reserve system designed to verify government Bitcoin holdings through cryptographic attestations.
Under the framework, Treasury would publish quarterly reports detailing reserve balances, transactions, and proof of control over private keys. The reports would be subject to independent third-party verification, while the U.S. Government Accountability Office would conduct ongoing oversight. The proposal represents one of the first attempts to codify proof-of-reserve standards into federal law for government-held digital assets.
Forks and airdrops would remain under government control
The legislation also addresses how the government would handle digital assets generated through blockchain forks and airdrops. Treasury would be required to retain and account for all forked or airdropped assets associated with reserve holdings. Those assets could not be sold for five years unless Congress authorizes otherwise.
After the holding period, Treasury would evaluate which forked asset has the largest market capitalization and retain that asset, while disposing of others unless they are determined to have strategic or technological value.
States could voluntarily participate
The proposal includes a framework allowing U.S. states to store their Bitcoin holdings within the Strategic Bitcoin Reserve through segregated accounts.
Participating states would retain ownership of their assets and any associated forked or airdropped tokens. The arrangement would operate through contractual agreements outlining custody procedures, security requirements, and withdrawal rights.
Treasury ordered to study budget-neutral Bitcoin acquisitions
Beyond managing existing holdings, the legislation directs the Treasury and Commerce departments to examine whether the federal government could acquire additional Bitcoin without increasing the national debt.
The study would evaluate several potential sources, including forfeited assets, conversion of non-Bitcoin holdings, surplus Federal Reserve remittances, gold certificate revaluations, tax payments, gifts, and partnerships with states or private entities. However, the bill explicitly states that nothing in the legislation authorizes new borrowing, taxation, or deficit spending to purchase Bitcoin.
Private ownership protections included
The legislation also seeks to address concerns about government involvement in digital asset markets by including explicit protections for private ownership rights. It states that nothing in the bill would authorize the federal government to seize lawfully acquired Bitcoin or restrict the ability of individuals and businesses to buy, hold, transfer, or self-custody digital assets in accordance with existing laws.
If enacted, the measure would create a formal framework for managing federal Bitcoin holdings while imposing strict transparency, reporting, and long-term custody requirements. The bill has been referred to the House Financial Services Committee for consideration.
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