In brief:
₿- The bill would require the Treasury to establish a Bitcoin reserve within 180 days and restrict the sale or use of its holdings for 20 years.
₿- H.R. 8957 must still pass the full House and Senate before it can reach the president for signature.
The U.S. House Financial Services Committee has advanced legislation that would create a federal strategic Bitcoin reserve, moving the proposal one step closer to consideration by the full House of Representatives. The committee approved the American Reserve Modernization Act (H.R. 8957) by 28 votes to 21 on September 16. The bill was considered in an updated form following an amendment proposed by Republican Representative Bryan Steil.
The committee’s approval does not establish a strategic Bitcoin reserve yet. The legislation would still need to pass the House and Senate before being sent to the president for signature.
What the proposed Bitcoin reserve would hold
Under the bill, the U.S. Treasury would have 180 days to establish a strategic Bitcoin reserve and a separate reserve for other digital assets.
Federal agencies would be required to identify cryptocurrencies already under government control. Bitcoin that is not legally designated for another purpose could be transferred into the strategic reserve, including certain permanently confiscated holdings that do not need to be returned to victims or used to satisfy legal obligations.
The proposed framework would also impose significant restrictions on the government’s Bitcoin holdings. Bitcoin transferred to the reserve could not be sold, exchanged, pledged, or otherwise used for 20 years following enactment.
The Treasury would then have to provide Congress with recommendations on the assets’ future disposition. The bill would allow the department to propose selling up to 10% of the reserve during two years, although such a proposal would not itself authorize a sale.
No immediate mandate for new Bitcoin purchases
The legislation does not direct the U.S. government to immediately purchase additional Bitcoin with taxpayer funds or new borrowing.
Instead, the Treasury and Department of Commerce would have 180 days to study potential ways to increase the reserve without imposing new taxes, taking on additional debt, or increasing the national debt.
Other digital assets held by the government would be managed separately. The Treasury could sell those assets under established rules, with proceeds first covering reserve-management costs and remaining funds potentially directed toward reducing the national debt.
The proposed Bitcoin reserve would also face annual reporting requirements, independent audits, and cryptographic proof of ownership. States could voluntarily transfer Bitcoin to the Treasury for custody while retaining ownership of their assets.
What happens next?
The committee vote advances H.R. 8957, but leaves several legislative stages ahead. The bill must be considered by the full House and, if approved, pass the Senate before it can become law.
The proposal has also drawn opposition. During the committee process, lawmakers debated the role of Bitcoin in U.S. reserves, including concerns about the cryptocurrency’s volatility and its broader economic significance.
For now, the committee vote represents another step in the U.S. debate over whether Bitcoin should become part of the country’s formal strategic reserve framework.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research and consult a qualified cryptocurrency advisor before making any investment decisions.
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Rodcas Consulting Group