House committee advances Bitcoin reserve bill with 20-year holding rule, 28-21

The House Financial Services Committee voted 28-21 on September 16, 2026, to advance amended legislation that would give the federal Strategic Bitcoin Reserve a statutory foundation, including a 20-year minimum holding period for qualifying Bitcoin.

The measure, known as the American Reserve Modernization Act of 2026, would establish a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile under the U.S. Treasury.

Bitcoin reserve bill introduces a 20-year BTC holding period

A central provision of the Bitcoin reserve bill is a minimum 20-year holding period for qualifying Bitcoin placed into the proposed Strategic Bitcoin Reserve.

Under the amended legislation, the reserve would primarily contain Bitcoin that the federal government has obtained through final criminal or civil forfeiture proceedings or certain civil penalties. The assets would remain subject to existing legal claims and forfeiture requirements.

During the 20-year period, qualifying Bitcoin generally could not be sold, exchanged, auctioned, pledged or otherwise disposed of.

Treasury would be required to provide Congress with recommendations two years before the holding period expires on whether the government should continue retaining the assets or allow a controlled release.

After the minimum holding period, Treasury could recommend selling up to 10% of the reserve during any two-year period. Any such recommendation would have to consider factors including the federal government’s financial position, the national deficit, Bitcoin’s long-term viability and potential effects on the market.

Rep. Nick Begich, one of the measure’s sponsors, has argued that federal Bitcoin holdings need a more unified custody structure.

The proposal’s importance extends beyond the immediate amount of BTC controlled by the U.S. government. A statutory reserve could provide a more durable framework for managing those assets across future administrations.

Bitcoin reserve bill changes transparency and custody rules

The latest version of the Bitcoin reserve bill also changes how the government would report its Bitcoin holdings.

Earlier versions called for quarterly proof-of-reserve reporting. The committee-approved substitute instead requires an annual report covering reserve holdings, transactions and control of the private keys associated with the assets.

An independent auditor with expertise in cryptographic attestations would verify the report, while the U.S. Comptroller General would maintain oversight.

The bill would also require federal agencies to provide Treasury with an accounting of Bitcoin and other digital assets they hold, have seized or otherwise control. That accounting would be required within 60 days of enactment and annually afterward.

Once the Treasury reserve and separate Digital Asset Stockpile become operational, qualifying assets held elsewhere by federal agencies would generally be transferred under procedures designed to preserve traceability and auditability.

House Financial Services Committee Chairman French Hill described the custody component as an important part of the proposal.

The committee’s official remarks identify the proposal as creating a Strategic Bitcoin Reserve and separate Digital Asset Stockpile within Treasury for federally held Bitcoin and other digital assets acquired through forfeiture.

For the crypto market, improved disclosure could become particularly relevant if the government eventually provides independently verified information about the size and movement of its holdings.

Public blockchain trackers can identify addresses believed to be associated with government entities, but such estimates are not equivalent to an official Treasury reserve statement.

Bitcoin reserve bill does not authorize a major BTC buying program

One important distinction for investors is that the Bitcoin reserve bill does not direct the U.S. government to purchase a fixed amount of Bitcoin.

The amended legislation would give Treasury and the Commerce Department 180 days to examine possible budget-neutral methods for acquiring additional BTC.

The study could examine potential transactions involving non-Bitcoin digital assets held in the federal stockpile, Bitcoin obtained through forfeitures or settlements, and arrangements involving states, private entities or international partners.

However, the legislation specifically prevents the study from becoming an automatic authorization for deficit-financed Bitcoin purchases. The proposal does not authorize new borrowing, new taxes or deficit spending to fund additional Bitcoin acquisitions.

The amended H.R. 8957 therefore focuses primarily on custody, preservation and long-term management of Bitcoin already controlled by the federal government, while leaving the question of additional purchases to a future study.

The legislation would also create a voluntary custody program for states. Under the proposal, states could place their Bitcoin in segregated accounts within the Treasury’s Strategic Bitcoin Reserve while retaining legal ownership of their assets.

Bitcoin reserve bill still faces House and Senate hurdles

The committee vote represents an important procedural step, but the Bitcoin reserve bill has not become law.

The House Financial Services Committee approved the amended H.R. 8957 by 28 votes to 21 after adopting a substitute amendment from Rep. Bryan Steil. The measure must still receive consideration by the full House before it can move through the remainder of the legislative process.

If the Bitcoin reserve bill ultimately passes both chambers of Congress in identical form and receives presidential approval, several implementation deadlines would follow.

Treasury would have to establish the reserve and Digital Asset Stockpile, conduct the required asset accounting and complete its study of potential budget-neutral Bitcoin acquisition methods.

President Donald Trump established the current Strategic Bitcoin Reserve through an executive order in March 2025.  The new legislation would seek to give the broader framework a statutory foundation rather than leaving it solely dependent on executive action.

The Bitcoin reserve bill therefore matters less as an immediate source of new market demand and more as a potential change in how the U.S. government treats Bitcoin as a strategic asset.

A 20-year holding requirement could limit the government’s ability to sell qualifying BTC, while annual proof-of-reserve reporting could introduce a more formal transparency mechanism.

At the same time, the absence of an immediate government purchase mandate means investors should not interpret the committee vote as authorization for a large-scale U.S. Bitcoin buying program.

The next stages of the legislative process will determine whether the proposal survives in its current form, is amended further or fails to advance.

As of September 17, 2026, the key fact remains that the Bitcoin reserve bill has cleared the House Financial Services Committee but has not yet passed Congress.