A bill to formally establish a U.S. Strategic Bitcoin Reserve has advanced through the House Financial Services Committee, marking a significant step in the legislative process. The American Reserve Modernization Act of 2026 (H.R. 8957) proposes a 20-year holding period for federal Bitcoin holdings managed by the Treasury Department, with no sales permitted during that time. The legislation also seeks to extend wash-sale rules to cryptocurrency transactions and create a separate stockpile for other digital assets, while explicitly stating that privately held Bitcoin cannot be seized by the government for the reserve.
The bill, introduced by Rep. Nick Begich (R-AK) and co-led by Rep. Jared Golden (D-ME), has garnered bipartisan support with over 20 cosponsors. A full markup is scheduled for September 16, 2026, which could lead to a vote by the entire House. This legislative effort aims to codify practices the federal government has been informally following since a 2025 executive order from President Trump, which directed agencies to retain forfeited Bitcoin rather than auctioning it.
Key Provisions and Context
According to the bill, the Treasury Department would be responsible for managing these federal Bitcoin holdings. The legislation mandates a 20-year holding period for any Bitcoin designated for the strategic reserve. Furthermore, it establishes a distinct “Digital Asset Stockpile” for non-Bitcoin digital assets, differentiating them from the strategic reserve treatment afforded to Bitcoin. A key provision ensures that the government cannot seize privately owned Bitcoin from citizens to contribute to this reserve.
US agencies currently hold an estimated 328,372 BTC, with a valuation estimated to be between $25 billion and $30 billion. Under the proposed act, this significant portion of Bitcoin would be locked away for two decades, effectively removing it from the market for a generation. This action could represent approximately 1.5% of Bitcoin’s total 21 million cap. The Treasury would also be required to publish quarterly Proof-of-Reserve reports, supplemented by independent audits.
Regulatory and Market Implications
In addition to the reserve provisions, H.R. 8957 extends wash-sale rules to crypto. These rules, currently applied to traditional securities, prevent traders from selling an asset at a loss and immediately repurchasing it to claim a tax deduction. The legislation aims to close this loophole for cryptocurrency, treating digital assets more similarly to traditional securities for tax purposes. This provision may face opposition from crypto industry lobbyists.
The formalization of U.S. government Bitcoin holdings through legislation could signal an increased institutional acceptance and a perception of Bitcoin as a long-term store of value. However, the bill’s journey is not complete. Even if it passes the full House, its progression through the Senate remains uncertain and could lead to further modifications. The extension of wash-sale rules to crypto may also attract significant pushback from industry participants who have benefited from the current tax treatment.
Why This Matters
The materials describe a narrow update: The American Reserve Modernization Act of 2026 (H. The bill’s passage through the full House.
Broader Context
Source materials place the factual news in this context: A bill to formally establish a US Strategic Bitcoin Reserve just cleared the House Financial Services Committee, moving one step closer to a full floor vote.
