The US House Financial Services Committee has passed the American Reserve Modernization Act (H.R. 8957), a bill that seeks to institutionalize Bitcoin reserves by mandating a 20-year freeze on confiscated cryptocurrency. The legislation advanced on June 16 with a vote of 28-21.
The bill aims to codify a policy that would require Bitcoin confiscated by the government to be held for a minimum of 20 years, preventing its sale. Additionally, it mandates quarterly transparency audits and proof-of-reserve reports for these digital assets. This move could transform Bitcoin from a liquidatable law enforcement asset into a long-term national reserve asset, comparable to gold reserves.
According to the bill, the US government currently holds approximately 324,527 Bitcoin, valued at around $24.7 billion at the time of writing. The bill proposes consolidating confiscated Bitcoin into a ‘Strategic Bitcoin Reserve’ and other confiscated crypto assets into a ‘Digital Asset Stockpile’ managed by the Treasury Department. The current fragmented custody of these assets poses cybersecurity risks and lacks accountability.
Introduced by Representative Nicholas Begich on May 21, the American Reserve Modernization Act also acknowledges the right to private Bitcoin ownership and self-custody. The bill defines ‘holding private keys’ as a foundational principle of financial sovereignty, privacy, and individual liberty in the digital age. This federal recognition of self-custody rights is considered a significant development in cryptocurrency policy.
While the bill has passed the committee stage, it still requires approval from the full House and Senate, presenting potential obstacles. The exact implementation details and the potential impact on the Bitcoin market are yet to be determined.
The bill allows for research into ‘budget-neutral’ Bitcoin expansion strategies and permits state governments to store their Bitcoin holdings within the Federal Reserve system. Much of the government’s Bitcoin holdings were seized from dark web markets like Silk Road.
If enacted, this legislation would mark the first time the US government legally recognizes Bitcoin as a national reserve asset. The bill’s passage through the committee is seen by some as increasingly likely due to Republican control in Congress and a potential shift in former President Trump’s stance on Bitcoin.
Why This Matters
The materials describe a narrow update: The US House Financial Services Committee passed the American Reserve Modernization Act (H. The bill still needs to pass the full House and Senate.
Broader Context
Source materials place the factual news in this context: The bill was proposed by Representative Nicholas Begich on May 21.
