The House committee has advanced a bill to establish a Strategic Bitcoin Reserve, revealing a clear party divide on the issue.
Overview of the Bill's Progress
The House Financial Services Committee has approved the American Reserve Modernization Act, also known as H.R. 8957, with a vote tally of 28 in favor and 21 against. This bill aims to establish a Strategic Bitcoin Reserve, a move that has sparked significant debate along party lines.
All affirmative votes were cast by Republican members, while Democrats uniformly opposed the legislation. A proposed amendment from Democratic ranking member Maxine Waters failed to pass with the same voting outcome.
Key Features and Adjustments
The bill, which significantly modifies earlier proposals, directs the Treasury to set up a Strategic Bitcoin Reserve and a Digital Asset Stockpile within 180 days. Agencies are required to disclose their holdings within 60 days after the establishment. According to committee chairman French Hill, the bill is designed to ensure that digital assets are under the Treasury’s custody and oversight. Notably, Bitcoin acquired through this reserve cannot be liquidated or otherwise disposed of for 20 years.
Significant changes have been made to the legislation compared to its original draft. Earlier provisions that included more complex funding strategies were removed. The current version limits the acquisition methods to asset swaps, forfeitures, and state partnerships, while eliminating references to Federal Reserve resources. Reporting requirements have also been relaxed, switching from quarterly to annual reports without the necessity of public disclosure on the Treasury's website.
Additionally, the definition of "Qualifying Bitcoin" has been expanded to include all federally-held Bitcoin, not just those acquired through forfeiture. The bill does not permit any Bitcoin purchases but mandates a review to assess the feasibility of future acquisitions without taxpayer costs. Treasury Secretary Scott Bessent has already indicated that agency purchases will not occur.
Future Steps
The bill, which stems from an executive order issued by former President Trump in March 2025, still needs to be passed by the entire House and currently lacks a counterpart in the Senate. If approved, it will mark a significant step in the U.S. government's approach to digital assets.
