TLDR
- House Financial Services Committee approved the American Reserve Modernization Act (ARMA) with a 28-21 vote
- Legislation mandates minimum 20-year holding period for government-owned Bitcoin
- Federal government possesses approximately 324,527 Bitcoin valued at roughly $24.7 billion
- Legislation mandates quarterly proof-of-reserve disclosures and independent audits
- Bill must clear full House and Senate votes before presidential approval
Congressional legislators took a significant step Wednesday toward codifying President Donald Trump’s Bitcoin reserve executive directive into lasting federal statute.
BREAKING: 🇺🇸 US House committee PASSES the Strategic Bitcoin Reserve bill.
The bill would lock government held Bitcoin in a federal reserve for at least 20 years and require regular audits of US Bitcoin holdings. pic.twitter.com/YbiOzeBVfe
— Bull Theory (@BullTheoryio) September 16, 2026
The House Financial Services Committee greenlit the American Reserve Modernization Act of 2026 with a 28-21 tally. Representative Nicholas Begich originally brought the legislation forward in May.
Key Provisions of the Legislation
This proposed law would establish a Strategic Bitcoin Reserve alongside a distinct Digital Asset Stockpile within the Treasury Department. Both repositories would manage digital currencies obtained via criminal and civil asset seizures.
According to the legislation, Bitcoin maintained in the federal reserve would face a mandatory 20-year minimum holding requirement. This represents an unprecedented long-term strategy for managing government assets.
Federal authorities presently control approximately 324,527 Bitcoin, representing a market value near $24.7 billion, based on data from Arkham Intelligence.
The proposed legislation further mandates comprehensive reporting from all federal departments regarding their digital asset inventories. Accountability mechanisms include quarterly proof-of-reserve disclosures alongside independent third-party verification processes.
Additionally, the measure calls for research into fiscally neutral approaches for expanding the reserve without increasing taxpayer burden. Individual states would gain authorization to deposit their Bitcoin holdings with the Federal Reserve system under this framework.
The bill explicitly protects individual citizens’ rights to possess and manage their personal Bitcoin. It characterizes private key ownership as fundamental to both financial independence and individual freedom.
Divided Reactions
Representative Bryan Steil endorsed the measure, asserting it would strengthen reserve positions and contribute to deficit reduction efforts. He maintained that modernizing US reserves is essential for maintaining global economic competitiveness.
Connor Brown, executive director of the Bitcoin Policy Institute, characterized the committee’s decision as a watershed moment for cryptocurrency policy development.
However, opposition emerged from Representative Bill Foster, who dismissed Bitcoin as excessively unpredictable and unstable for prudent government portfolio management.
“I don’t think anyone believes that bitcoin is critical to the U.S. economy,” Foster said during the session.
The legislation has deeper roots. Republicans Begich and Senator Cynthia Lummis initially proposed a predecessor version termed the BITCOIN Act over a year prior.
The Path Forward
Trump’s initial 2025 executive order created the reserve utilizing Bitcoin already in government possession from asset forfeitures. He simultaneously instructed Treasury and Commerce departments to identify budget-neutral acquisition strategies.
Concerns emerged in July questioning whether the Treasury possesses legal authority to administer the reserve, Bloomberg reported.
While the committee approval represents progress, the legislation faces additional challenges requiring passage through the complete House and Senate before reaching the president for final authorization.
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