House Panel Advances US Bitcoin Reserve Bill With 20-Year Hold

House Panel Advances the Bitcoin Reserve Bill

Bitcoin legally owned by the federal government and not required by law for another purpose would be subject to a statutory 20-year holding period under legislation advanced by a key House committee. The House Financial Services Committee approved the American Reserve Modernization Act by a 28-21 vote on Sept. 16 after adopting a substitute amendment offered by Representative Bryan Steil (R-WI).

The vote represents a committee-level advance rather than passage by the full House. The latest congressional action on H.R. 8957 sends the amended measure forward for further consideration, while enactment would still require House passage, Senate approval, and President Donald Trump’s signature.

The introduced bill stated:

“The Secretary shall hold all bitcoin acquired by the United States and deposited in the Strategic Bitcoin Reserve, regardless of acquisition method, for not less than 20 years from the date of enactment of this act; after the date of enactment of this Act …”

The clause that followed applied the same requirement to bitcoin deposited later, starting a separate 20-year clock on each deposit date. The committee-adopted text replaced that rolling schedule with a single 20-year period beginning on the enactment date.

What the 20-Year Holding Rule Would Do

The legislation builds on the May introduction of the American Reserve Modernization Act by Representatives Nick Begich (R-AK) and Jared Golden (D-ME). Treasury would have 180 days after enactment to establish the Strategic Bitcoin Reserve and a separate Digital Asset Stockpile within the department. During the holding period, reserve bitcoin could not be sold, swapped, auctioned, encumbered, or otherwise disposed of. Two years before the period ends, Treasury would submit recommendations to Congress on continued retention or controlled releases.

Congressional action could affect a substantial pool of government-controlled cryptocurrency assembled largely through law enforcement cases. Onchain data attributed approximately 324,527 BTC to U.S. government-linked addresses, although seized assets and finally forfeited assets have different legal status. The amended bill covers qualifying bitcoin owned by the government and not legally required for another purpose.

The 20-year approach treats bitcoin as a long-term reserve asset rather than inventory scheduled for routine disposal. Bitcoin’s fixed supply underpins its comparison with gold as a potential store of value, but its price remains substantially more volatile. After the holding period, Treasury could recommend selling up to 10% of reserve assets during any two-year period.

How the Bill Differs From Trump’s Executive Order

Trump’s Executive Order 14233 already legally directs the federal government to operate the Strategic Bitcoin Reserve and a separate Digital Asset Stockpile. The 2025 executive order establishing the two programs relies on existing executive and forfeiture authorities. It instructs the government not to sell bitcoin deposited in the reserve and permits qualifying forfeited non-bitcoin assets to remain in the separate stockpile.

If H.R. 8957 fails, the United States can continue holding qualifying bitcoin and other cryptocurrencies under the executive order and existing law. The bill is therefore not the government’s first legal authority to stockpile those assets. However, a future president could amend or revoke the executive order, subject to other applicable laws governing forfeited property.

If the bill becomes law, a future president could not eliminate its statutory requirements through another executive order. Congress could still amend or repeal the law through subsequent legislation, which the president would need to sign unless Congress overrode a veto. A federal court could also invalidate provisions found unconstitutional, meaning the reserve framework would become more durable but not permanent.

Annual Audits, Agency Transfers, and Acquisition Study

The legislation would add requirements that are not secured by the executive order alone. Each agency would provide Treasury with an inventory of all bitcoin and other digital assets within 60 days and annually afterward. Qualifying assets would transfer into the reserve or stockpile within 30 days after those structures are established.

Treasury would publish an annual proof-of-reserve report covering holdings, transactions, and control of private keys. An independent auditor experienced in cryptographic attestations would verify the report, while the comptroller general would conduct continuing oversight. The amended version uses annual reporting, replacing the quarterly schedule contained in the introduced measure.

The bill would also direct Treasury and Commerce to study lawful, budget-neutral methods for acquiring additional bitcoin. The study could examine non-bitcoin asset sales, forfeitures, settlements, and cooperative programs, but the provision does not authorize purchases. The section also states that nothing in it authorizes borrowing or other financing, new taxation, deficit spending, or the use of U.S. digital or other assets as collateral to acquire bitcoin, with a report due to Congress within 180 days of enactment.