U.S. Congress Introduces Bill for Strategic Bitcoin Reserve with 20-Year Lock-Up and Transparency

The full text of a significant proposed U.S. bill, the American Reserve Modernization Act of 2026, has been made public, detailing plans for establishing a federal Strategic Bitcoin Reserve. This legislation outlines a comprehensive framework for how the U.S. government would manage its Bitcoin holdings, including strict custody rules and unprecedented transparency requirements.

Establishing a Federal Bitcoin Cache

Introduced by Rep. Nick Begich (R-AK) and co-lead Rep. Jared Golden (D-ME), alongside over 20 co-sponsors, H.R. 8957 aims to formally integrate a Strategic Bitcoin Reserve into federal law. While the general idea of consolidating federally held Bitcoin under Treasury oversight was previously known, the newly released text reveals an intricate structure that goes beyond earlier executive actions. The bill is currently under review by the House Committee on Financial Services.

A central tenet of the proposed law is a mandatory 20-year lock-up period for all Bitcoin deposited into this reserve. During this extended timeframe, no holdings can be sold, swapped, or otherwise disposed of. This lock-up clock would reset with each new deposit, meaning any Bitcoin acquired through criminal or civil forfeiture would remain untouched for two decades once transferred to the reserve. Following this initial period, the Treasury Secretary could recommend offloading a maximum of 10% of the reserve's assets within any two-year window, subject to Congressional approval.

Strict Custody and Transparency Rules

The bill also mandates a robust "Proof of Reserve" system, requiring quarterly public cryptographic attestations of all holdings. This level of on-chain transparency for a federal financial program would be groundbreaking. Independent third-party audits and oversight from the Comptroller General are also stipulated to ensure accountability and verify the integrity of the reserve.

Any non-Bitcoin digital assets acquired by the government, such as Ethereum or other forfeited cryptocurrencies, would be held in a separate Digital Asset Stockpile. Proceeds generated from the disposition of these non-Bitcoin assets would be directed towards either expanding the primary Bitcoin reserve or contributing to the reduction of the national debt. This distinction highlights Bitcoin's unique role within the proposed framework.

Budget-Neutral Acquisition and State Participation

Crucially, the legislation explicitly prohibits the use of new borrowing, new taxes, or deficit spending to acquire Bitcoin for the reserve. Instead, it directs the Treasury and Commerce Departments to jointly study budget-neutral acquisition methods within 180 days of the bill's enactment. These pathways could include converting assets from the non-Bitcoin stockpile, utilizing Federal Reserve surplus remittances, or revaluating gold certificates.

The bill further introduces a voluntary program allowing states to store their own Bitcoin holdings in segregated Treasury accounts, fostering cooperation at a governmental level. It also clearly states that no provision within the act should be interpreted as authorizing the seizure of privately held Bitcoin, addressing a common concern among crypto enthusiasts. This legislative push comes as the U.S. Congress continues to grapple with various aspects of digital asset regulation, from clarifying crypto tax rules to broader market oversight. The recognition of Bitcoin as legal property by some jurisdictions, such as a Chinese court's landmark ruling, underscores the growing global importance of digital assets.

Key takeaways from the bill include:

• A 20-year lock-up period for all Bitcoin in the strategic reserve.
• Mandatory Proof of Reserve with quarterly public attestations.
• Prohibition of new debt or taxes for Bitcoin acquisition.
• Separate management for non-Bitcoin digital assets.
• Voluntary state participation and protection against private Bitcoin seizure.

The bill now awaits further consideration, representing a significant step towards a formalized U.S. government approach to Bitcoin as a strategic asset.