Hassan Maishera
TL;DR
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The House Financial Services Committee advanced the American Reserve Modernization Act.
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The bill would codify President Trump’s strategic Bitcoin reserve.
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Treasury would maintain a secure facility for federally held BTC.
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The government could acquire additional Bitcoin over five years using budget-neutral strategies.
The House Financial Services Committee has advanced legislation that would place the United States’ strategic Bitcoin reserve on a permanent statutory footing.
Lawmakers voted Wednesday to move forward with the American Reserve Modernization Act, a 19-page bill directing the Treasury Department to maintain a secure facility for storing government-held Bitcoin.
The legislation would also authorize budget-neutral BTC acquisitions and establish a separate stockpile for other digital assets.
Bill Would Codify Trump’s Bitcoin Reserve
President Donald Trump created the Strategic Bitcoin Reserve through an executive order in 2025.
The reserve is funded primarily with Bitcoin obtained through criminal and civil forfeiture proceedings. Trump’s order also created a separate digital-asset stockpile for cryptocurrencies other than BTC.
Passing legislation would provide a more durable legal foundation for the reserve than an executive order alone. Questions have emerged over whether the Treasury possesses sufficient authority under current law to operate and manage the holdings.
Committee approval moves the bill forward in the legislative process, but it must still pass the full House and Senate before reaching the president’s desk.
The bill directs the Treasury Department to maintain a secure Bitcoin storage facility for federal holdings.
It also includes provisions allowing the government to acquire additional BTC over five years using budget-neutral strategies. These methods would need to avoid creating new costs for taxpayers.
The Treasury and Commerce departments were similarly instructed under Trump’s executive order to develop acquisition plans that would not add to federal spending.
Details about custody arrangements, oversight procedures and the specific budget-neutral strategies the government could employ would likely become important issues as lawmakers debate the measure.
Legislation Revives Earlier BITCOIN Act
Republican Representative Nick Begich and Senator Cynthia Lummis introduced an earlier version of the proposal more than a year ago.
That legislation was called the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act, abbreviated as the BITCOIN Act.
The latest proposal retains central elements of that initiative, including additional Bitcoin acquisitions and the creation of a broader digital-asset stockpile.
Republican Representative Bryan Steil described the reserve as a way to strengthen US financial reserves and support the country’s competitiveness as digital assets reshape global markets.
The proposal faces opposition from lawmakers who question whether Bitcoin is suitable for a national reserve.
Democratic Representative Bill Foster argued that BTC’s volatility and investment risks make it inappropriate for the government to hold as a strategic asset.
Critics may also scrutinize the security, valuation, and concentration risks associated with maintaining a substantial federal cryptocurrency portfolio.
Supporters contend that formal legislation could resolve questions surrounding the Treasury’s authority and prevent future administrations from easily reversing the reserve policy.
This latest development comes roughly 24 hours after the US Congress failed to pass the CLARITY Act.
