Key Insights
- The 20-year lockup applies to qualifying federal Bitcoin under the statutory framework.
- Annual reserve reporting replaces the original quarterly schedule.
- The acquisition study does not authorize borrowing, new taxes, or deficit spending.
The House Financial Services Committee took one step closer to the federal law with its passage on September 16 of a bill, H.R. 8957, that would create a Strategic Bitcoin Reserve. The American Reserve Modernization Act is making its way through the House for a vote on the House floor, moving forward on a 28-21 vote.
The committee first approved a substitute amendment provided by Representative Bryan Steil and then approved the amended bill. As a result, there are changes in the committee version of the bill from the bill introduced by Representative Nick Begich in May.
House panel reshapes the reserve framework
H.R. 8957 would establish the Strategic Bitcoin Reserve inside the Treasury Department. It would also create a separate digital asset stockpile for qualifying non-Bitcoin assets obtained through federal forfeiture.
Under the amended legislation, qualifying Bitcoin would remain in the reserve for at least 20 years. During that period, Treasury could not sell, swap, auction, encumber, or otherwise dispose of the Bitcoin.
However, the amended text creates a possible path after the initial lockup. Treasury could recommend selling up to 10% of reserve holdings during any two-year period after the 20-year period ends.
The American Reserve Modernization Act (ARMA) just cleared the House Financial Services Committee.
We built support with members of Congress, subject matter experts, Commerce, and Treasury. Significant effort was made by committee staff on this important legislation, and for… https://t.co/U7qq3dMFMc
— Congressman Nick Begich (@RepNickBegich) September 16, 2026
The bill would also require Treasury to consider national deficits, Bitcoin’s long-term viability, market effects, and federal finances before recommending sales.
The committee version also changes how the holding period works. Instead of starting a new 20-year clock whenever Bitcoin enters the reserve, the clock begins when the law takes effect.
Treasury Would Face New Reporting Rules
The legislation would centralize federal digital asset custody under Treasury while requiring agencies to account for their holdings. Agencies would have 60 days after enactment to provide Treasury with a complete accounting.
Furthermore, qualifying assets held outside Treasury would generally move into the new structures after they become operational. The legislation sets custody requirements designed to improve traceability and auditability.
The reporting framework also changed during Wednesday’s markup. The introduced bill called for quarterly proof-of-reserve reports. The Steil substitute instead requires an annual public report covering reserve holdings, transactions, and private-key control.
An independent auditor with cryptographic-attestation expertise would verify the report. The Comptroller General would also maintain oversight of the program.
The latest estimates of federal Bitcoin holdings vary considerably. Arkham estimates the U.S. government controls roughly 324,527 BTC, although on-chain estimates do not represent an official Treasury balance.
Acquisition study stops short of new purchases
The amended bill would not order Treasury to purchase a fixed amount of Bitcoin. Instead, Treasury and Commerce would study ways to expand the reserve without increasing federal borrowing, taxes, or deficit spending.
The agencies will have 180 days to report to Congress. The study might explore similar transactions with other federal digital assets, or transactions with states, private parties or other international partners.
The law would include a voluntary state option program. States could deposit Bitcoin into their own segregated Treasury reserve accounts and still be the legal title holder to their bitcoin.
Furthermore, the H.R. 8957 would recognize private ownership and self-custody rights.The provision states that the legislation does not authorize the government to confiscate or restrict lawfully held Bitcoin.
One frequently reported detail requires correction. The committee text does not extend the federal wash-sale rule to crypto. That issue belongs to separate digital asset tax legislation moving through the House Ways and Means Committee.
Reserve bill faces several legislative hurdles
The Strategic Bitcoin Reserve proposal follows President Donald Trump’s March 2025 executive order establishing a federal Bitcoin reserve. That order directed agencies to retain qualifying forfeited Bitcoin rather than auctioning it.
H.R. 8957 would move key elements of that policy into federal statute. Therefore, the framework would require congressional action for major statutory changes rather than relying solely on executive authority.
Still, committee approval does not make the reserve law. Before it can go to the Senate, the full House has to approve it. Then the Senate would have to pass a mirror image of the house bill before it could go to the president.
The vote on Sept. 16 was the latest in the series of failures to act on the CLARITY Act in the Senate, which have included Sept. 13, 15 and 19.Therefore, digital asset legislation continues along separate congressional tracks.
Conclusion
The Strategic Bitcoin Reserve bill has passed its first full House committee and will now go into a wider legislative process. The 20-year holding period, Treasury custody requirements, annual reporting period and acquisition study have the potential to affect the way Washington treats federally-held Bitcoin.
But a change in the proposal might still occur in the House and Senate. Which will be the final framework will depend on those votes, and any discrepancies between the two houses.
