Introduction
On September 16, the U.S. House Financial Services Committee will convene to discuss crucial legislation aimed at formally establishing the Strategic Bitcoin Reserve. This law would mandate that Bitcoin held by the federal government must be retained in this reserve for a minimum of two decades. The markup session is scheduled to begin at 10:00 a.m. ET in the Rayburn House Office Building, focusing largely on H.R. 8957, known as the American Reserve Modernization Act of 2026.
Legislative Background
Introduced in May by Republican Representative Nick Begich from Alaska, the bill has seen bipartisan support, including cosponsorship from Democratic Representative Jared Golden of Maine. Upon its introduction, the bill was aligned with the objectives of the House Financial Services Committee, which will review it officially during the upcoming session. Based on the committee’s confirmed agenda, this event is part of a broader “Markup of Various Measures”.
Key Provisions of H.R. 8957
Key provisions of H.R. 8957 require the Treasury Secretary to set up a secure facility for Bitcoin, designated as the Strategic Bitcoin Reserve, within six months of the bill’s passage. Additionally, a separate Digital Asset Stockpile would be responsible for managing all other cryptocurrencies owned by the government. Any Bitcoin obtained by the government through civil or criminal asset forfeiture or specific civil monetary penalties would qualify for storage in the reserve. Non-Bitcoin digital assets would be managed separately, allowing the Treasury Secretary to choose to sell, exchange, or otherwise handle them without impacting the national debt.
Holding Period and Recommendations
One of the standout features of the proposed legislation is the enforced 20-year holding period for Bitcoin stored within the reserve. Bitcoin already held in the reserve must stay for a minimum of 20 years following the law’s enactment, while any future acquisitions will also need to follow the same constraint from their deposit date. During this timeframe, the assets are strictly prohibited from being sold or otherwise disposed of.
Notably, to help guide future decisions regarding these holdings, two years prior to the expiration of the holding period, the Treasury Secretary must provide Congress with a recommendation on whether to continue holding the Bitcoin or gradually release it into the market. Post-holding period, the Secretary would have the authority to suggest disposing of no more than 10% of the reserves in any two-year timeframe.
Disclosure and Transparency
The bill also mandates a new disclosure framework for federal Bitcoin holdings upon enactment. The Treasury Secretary is tasked with creating a system to routinely verify and publicly attest the reserve’s existence through cryptographical means. Comprehensive quarterly reports are required detailing the reserve’s total Bitcoin and associated transactions, as well as validating control over its private keys. To ensure transparency, these reports must be uploaded to an official Treasury website and subjected to review by an external auditor specialized in cryptographic attestations.
In a related requirement, federal agencies must provide the Treasury with a thorough account of Bitcoin and other digital assets they hold within 60 days of the law’s passage. Until the new storage facilities are fully operational, these agencies are generally prohibited from disposing of any Bitcoin they possess, with specific exceptions for national security needs or court directives.
Origins and Future Considerations
Initially conceived through an executive order by President Donald Trump in March 2025, the Strategic Bitcoin Reserve is intended to securely manage government-sourced BTC primarily through forfeiture channels and not open-market acquisitions. Notably, the current legislation does not compel the government to purchase Bitcoin in fixed amounts; however, the Treasury alongside the Department of Commerce are instructed to conduct a study within 180 days on acquiring additional Bitcoin over the subsequent five years without impacting national debt, presenting various options to fund potential acquisitions.
Unlike similar proposals, such as Senator Cynthia Lummis’s BITCOIN Act, which set definitive Bitcoin purchase targets, H.R. 8957 adopts a more cautious approach. It allows state governments to opt-in to reserve programs, creating separate accounts for their Bitcoin holdings without mandating involvement.
Individual Rights and State Involvement
Additionally, this bill safeguards the rights of individuals regarding their Bitcoin ownership, affirming that it cannot be misconstrued to justify federal seizures of legally acquired assets, and upholding the rights to self-custody and transactions involving digital assets. This development occurs as various states, like Texas, explore direct custody strategies for Bitcoin, indicating a coordinated effort to establish comprehensive federal and state frameworks for cryptocurrency management.
