The legislation is intended to formalize Trump’s Bitcoin reserve policy, with Bitcoin obtained through civil and criminal forfeitures set to be held for 20 years.
US lawmakers moved forward on Wednesday with efforts to codify President Donald Trump’s executive order establishing a strategic Bitcoin reserve into federal law.
The American Reserve Modernization Act of 2026 (H.R. 8957) was approved by the US House Committee on Financial Services in a 28-21 vote. Under the bill, a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile would be created within the Department of the Treasury to hold federally controlled Bitcoin and other digital assets obtained through criminal or civil forfeiture.
Begich Raises Concerns Over Fragmented Bitcoin Custody
US Representative Nicholas Begich, who introduced the bill on May 21, said Bitcoin held by the federal government should not remain under fragmented or inconsistent custody arrangements. He argued that such a setup creates significant cybersecurity risks and does not provide a clear record of the digital assets owned by the federal government.
The development moves Washington closer to having Bitcoin established as a permanent component of the federal government’s reserves.
According to Arkham Intelligence, the US government is estimated to hold 324,527 Bitcoin, valued at approximately $24.7 billion at the time of writing.
Under ARMA, Bitcoin held in the federal government’s reserve would be required to remain there for at least 20 years.
The bill would require federal agencies to submit a complete account of digital assets held or controlled by the government, while transparency measures would be introduced through quarterly “proof of reserve” reports and independent third-party audits.
The legislation would also require a study into budget-neutral methods for expanding the Strategic Bitcoin Reserve and permit states to have their Bitcoin stored with the Federal Reserve.
The bill also recognizes private ownership and self-custody rights for Bitcoin, with control over private keys being described as fundamental to financial sovereignty, privacy and individual liberty in the digital era.
Bitcoin Policy Institute executive director Connor Brown described the development on Wednesday as a “genuinely historic step” for Bitcoin policy.
In May, Strive CEO Matt Cole described the legislation as “the most significant crypto measure” that could emerge from Washington.
The committee’s approval marks progress for the legislation, but it must still be passed by the full House and Senate before being sent to the president for approval.
