Congress Moves to Make the Bitcoin Reserve Permanent, 20-Year Lock Included

TL;DR

• The House Financial Services Committee takes up the American Reserve Modernization Act tomorrow, formalizing the Strategic Bitcoin Reserve into law

• Up until now, the reserve has only existed on presidential authority, and executive orders can be revoked by the next administration

• The Treasury must hold the Bitcoin for at least 20 years and cannot sell, swap or auction it off

• Republicans hold the committee 30 to 23, so the bill will clear it; the interesting thing to watch is how Democrats vote

As all eyes focus on today’s CLARITY Act vote, the House Financial Services Committee takes up the American Reserve Modernization Act (ARMA) tomorrow at 10:00 ET. It would formalize the Strategic Bitcoin Reserve into law. Up until now, the Bitcoin Reserve has only existed on presidential authority.

From Executive Order to Law

Back in 2025, President Trump signed an executive order barring selling forfeited Bitcoin in order to create a reserve. The order also tasked the Treasury with finding budget-neutral ways of buying more. But executive orders can be revoked by the next administration. Or the one after that. Which is why the Strategic Bitcoin Reserve is now being written into law.

ARMA also goes further than the executive order. It says that within 180 days, the Treasury must set up the reserve. It says that the Treasury must hold the Bitcoin for at least 20 years and that it cannot sell, swap or auction it off. The reserve will only hold Bitcoin, but other forfeited digital assets can be used to fund purchases of more. 

Scott Bessent, the US Treasury Secretary said in June:

We are proceeding with all deliberate speed, and we are making sure that as we are doing this complicated process, that we use best practices and things will be durable for the future.

Nobody Knows How Much Bitcoin the US Holds

Today, there is no definitive number as to how much BTC the US holds. Outside trackers estimate around 328,000. Scott Bessent said 207,000 in June. This bill will also require agencies to report their holdings to the Treasury within 60 days.

The bill has 23 co-sponsors, with 22 of them being Republican. The one Democratic sponsor and co-lead on the bill, Jared Golden of Maine, said in a statement:

Digital currencies are not the fringe phenomenon they once were. Individuals, businesses and governments already hold and trade them, and the U.S. is already one of the largest holders of bitcoin in the world. But Congress has never set a federal policy on what to do with that asset.

Since Republicans hold the House Financial Services Committee 30 to 23, the bill will pass even without any Democrats crossing the aisle. But it’s not without opposition. In a press release in March last year, Maxine Waters said about the executive order:

Typically, when the government holds strategic reserves, it is for an essential input that powers the U.S. economy and day-to-day life for American families. Crypto, however, does not fall into these categories, because it has no inherent value.

But the bill is still very likely to clear the committee. After that, it’ll have to wait until after November, when the House returns. The interesting thing to watch is how Democrats vote, if the pro crypto Democrats are still pushing regulation. One interesting figure that’ll come out when the bill passes: exactly how much Bitcoin does the US government hold?