US Moves Forward on Strategic Bitcoin Reserve with Treasury Management and Congressional Legislation

The U.S. is advancing plans for a Strategic Bitcoin Reserve, with Treasury Secretary Scott Bessent proceeding at a "deliberate speed" following a 2025 executive order. Rep. Nick Begich has introduced the American Reserve Modernization Act, which proposes a 20-year holding period for the government's 328,372 BTC, public proof-of-reserve reporting, and a formal Treasury-managed custody framework.

Strategic Bitcoin Reserve legislation

• ▪The American Reserve Modernization Act has been referred to the House Financial Services Committee for consideration
• ▪Representative Nick Begich introduced the American Reserve Modernization Act of 2026 (H.R. 8957) on May 21 to establish a federal Bitcoin reserve
• ▪Treasury Secretary Scott Bessent urged Congress to pass the Digital Asset Market Clarity Act to maintain U.S. leadership in crypto innovation
• ▪President Donald Trump signed an executive order in March 2025 directing the Treasury to establish a strategic Bitcoin reserve framework

Treasury custody framework

• ▪The proposed framework would allow U.S. states to voluntarily store their own Bitcoin holdings within the federal Strategic Bitcoin Reserve
• ▪On June 3, 2026, Treasury Secretary Scott Bessent testified that his department is proceeding with "deliberate speed" to establish the Bitcoin reserve
• ▪The Treasury Department would be responsible for managing the Strategic Bitcoin Reserve, including the custody and sale of its digital assets
• ▪The proposed legislation requires all federal agencies to account for their digital asset holdings within 60 days and transfer them to Treasury custody
• ▪The U.S. government currently holds 328,372 BTC, valued at $20.6 billion, acquired primarily through criminal and civil forfeitures

Twenty-year holding requirement

• ▪The American Reserve Modernization Act proposes a 20-year prohibition on selling, swapping, or auctioning Bitcoin held in the strategic reserve
• ▪Forked and airdropped assets associated with the reserve's holdings must be retained and cannot be sold for five years under the proposed bill

Sale restrictions after holding

• ▪Any sales from the reserve after 20 years would be subject to congressional oversight and an evaluation of market and national debt impacts
• ▪After the 20-year holding period, the Treasury could recommend selling up to 10% of the reserve's assets during any two-year period

Proof-of-reserve reporting standards

• ▪The Treasury would be required to publish quarterly reports on reserve balances, with data subject to independent third-party verification
• ▪The proposed legislation would legally require the Treasury to establish a public proof-of-reserve system to verify government Bitcoin holdings

Private ownership protections

• ▪The proposed legislation explicitly protects the rights of individuals and businesses to buy, hold, transfer, and self-custody digital assets
• ▪The American Reserve Modernization Act includes a provision stating it does not authorize the federal government to seize lawfully acquired Bitcoin