The American Reserve Modernization Act (H.R. 8957) has advanced through the House Financial Services Committee. The bill mandates that the Treasury Department manage federal Bitcoin holdings, enforcing a 20-year prohibition on selling or swapping these assets. The legislation, introduced by Rep. Nick Begich and Rep. Jared Golden, has secured over 20 bipartisan cosponsors.
The act formalizes a policy initiated by a 2025 executive order, which directed federal agencies to retain rather than auction forfeited Bitcoin. Currently, US agencies hold approximately 328,372 BTC, with an estimated value between $25 billion and $30 billion. The bill also establishes a separate Digital Asset Stockpile for non-Bitcoin holdings.
Under the proposed law, the Treasury must issue quarterly Proof-of-Reserve reports supported by cryptographic attestations and independent audits. The legislation explicitly prohibits the seizure of privately held Bitcoin from citizens. Additionally, it extends wash-sale rules to digital assets, aligning their tax treatment with traditional securities.
The 20-year holding requirement would effectively remove about 1.5% of the total 21 million Bitcoin supply from the market. While the bill aims to establish a long-term statutory framework for reserves, it faces potential legislative hurdles in the Senate and opposition from industry lobbyists regarding the new tax provisions.
