The U.S. House Financial Services Committee has approved a bill to create a strategic Bitcoin reserve, advancing it to the full House for a vote.
The House Financial Services Committee has voted in favor of a bill to create a federal Bitcoin reserve, with the vote tallying at 28 in support and 21 opposed.
Initially introduced by Republicans Nick Begich and Democrat Jared Golden in May, the American Reserve Modernization Act (H.R. 8957) saw amendments proposed by Republican Brian Stile prior to the vote.
Next, the measure will be presented to the full House of Representatives, and if approved, it will proceed to the Senate and then to the President for final approval.
Key Provisions of the Proposed Reserve
If the bill becomes law, it mandates the U.S. Department of the Treasury to establish a Bitcoin reserve and a dedicated storage facility for various digital assets within 180 days.
Federal agencies would be responsible for inventorying their cryptocurrency holdings. Bitcoin not designated for specific purposes will be moved to this reserve, which includes permanently confiscated coins unless they are to be returned to rightful owners or for legal payments.
Other digital assets will have separate storage arrangements. The Treasury can sell these assets according to established protocols, using the revenue first to cover management expenses, with surplus funds aimed at reducing the national debt.
Bitcoin allocated to the reserve would be off-limits for sale, exchange, or other uses for a period of 20 years. Two years before this period ends, the Treasury must provide Congress with suggestions regarding the future handling of these assets, and may seek approval to sell up to 10% of the reserve every two years, though this would not guarantee authorization to proceed.
Oversight will be maintained through annual reports detailing proof of ownership, along with independent audits conducted by the U.S. Government Accountability Office.
States may also choose to deposit their Bitcoin holdings with the Treasury, retaining ownership while the assets are kept in separate accounts.
Immediate additional purchases by the government are not allowed; instead, both the Treasury and the Department of Commerce must explore alternatives for replenishing the reserve without increasing taxes, borrowing, or adding to the national debt within the stipulated time frame.
Stile emphasized the importance of the initiative, stating, "This is a prudent financial strategy that will strengthen our reserves while also helping to reduce the deficit. Digital assets continue to reshape the global market. We must modernize our strategic reserves to maintain U.S. leadership and financial stability."
Opposition was voiced by Democrat Bill Foster back in July, who raised concerns about the volatility of Bitcoin and its economic implications for the country.
Amendments Prior to Approval
Changes were made before the committee's approval, notably switching from quarterly to annual public reporting on reserves. Furthermore, the holding period for assets obtained through forks or airdrops was shortened from five years to just one year.
The original proposals for replenishing the reserve were revised, now excluding options like revaluing Federal Reserve gold certificates and transferring profits from reserve banks as potential funding sources. The study led by the Treasury and Commerce Department will focus on utilizing other government crypto assets and collaborations with states, private entities, and international partners.
It's important to mention that a strategic Bitcoin reserve was first envisioned through an executive order by President Donald Trump in March 2025, but its establishment faced delays due to internal disagreements over its management and structure.
