US House Committee Approves Bitcoin Reserve Bill
Legislation proposes strategic Bitcoin reserve and digital asset storage under Treasury.
1Bill passes committee vote
The US House Financial Services Committee approved the American Reserve Modernization Act (H.R. 8957) with a 28-21 vote on September 16, 2026. The bill establishes a strategic Bitcoin reserve and separate digital asset storage under the Treasury Department. It mandates that confiscated Bitcoin must be held for at least 20 years, making it a permanent part of federal reserves. The legislation now moves to full House consideration.
2Current system deficiencies
Representative Nicholas Begich criticized the current fragmented system for storing government-held Bitcoin, calling it inconsistent and creating unacceptable cybersecurity risks. The proposed centralized storage aims to provide proper accounting of federal digital asset holdings. This comes as the US government reportedly controls approximately 324,527 BTC worth $24.7 billion, primarily from criminal and civil forfeitures.
3Storage requirements
The bill specifies that all Bitcoin and digital assets obtained through federal confiscations must be stored in the new Treasury facility for minimum 20 years. This long-term holding policy contrasts with previous ad-hoc approaches to seized cryptocurrency. The strategic reserve concept mirrors traditional commodity reserves, treating Bitcoin as a permanent asset class rather than temporary seized property.
4Legislative pathway
After committee approval, the bill must pass the full House, then the Senate, and receive presidential signature to become law. The process faces uncertainty, as evidenced by the failed CLARITY Act in the Senate. The legislation represents one of several attempts to formalize US government cryptocurrency policies amid growing institutional adoption and regulatory debates.
5Security rationale
Proponents argue centralized storage reduces cybersecurity vulnerabilities from current fragmented systems across multiple agencies. The Treasury facility would implement standardized security protocols for all government-held digital assets. This approach aims to prevent loss or theft while providing transparent accounting of federal crypto holdings, addressing criticism of opaque current practices.
6Political context
The bill codifies policies initiated under President Donald Trump's administration regarding federal Bitcoin reserves. Its committee passage reflects ongoing partisan divides, with all Democratic members voting against it. The legislation's future depends on navigating these political divisions while addressing legitimate concerns about government cryptocurrency management.
7Market implications
The proposed 20-year holding period would effectively remove seized Bitcoin from circulation, reducing available supply. This policy could create upward price pressure over time, similar to central bank gold reserves. However, the bill's ultimate impact depends on final passage and implementation details regarding which assets qualify for the reserve.
8Regulatory precedent
The legislation represents a significant step toward formalizing federal cryptocurrency custody policies. If passed, it would establish the first statutory framework for government-held digital assets, potentially influencing other nations' approaches. The bill also signals growing institutional recognition of Bitcoin as a strategic reserve asset class.
Original article: INCRYPTED — US House Committee Approves Bitcoin Reserve Bill