Policy
House Committee Approves Bill to Lock Federal Bitcoin Holdings for 20 Years
The House Financial Services Committee has taken a significant step in cryptocurrency legislation by advancing the American Reserve Modernization Act of 2026 (ARMA). On September 16, the committee voted 28-21 to approve the bill, which aims to establish a federal Bitcoin reserve with a mandatory holding period of 20 years.
Under the proposed legislation, any Bitcoin deposited into the reserve must remain untouched for two decades, prohibiting actions such as selling, swapping, or auctioning during this period. This measure is part of a broader effort to formalize how the federal government manages its digital assets, following an executive order from President Donald Trump in March 2025 that called for the creation of a Strategic Bitcoin Reserve.
The bill also requires annual independent audits and public reporting of the reserve's holdings and transactions, ensuring transparency and accountability. The framework distinguishes between qualifying federal Bitcoin holdings and other assets, focusing on what the government can officially count as reserves.
Additionally, the legislation tasks the Treasury and Commerce departments with studying the feasibility of acquiring more Bitcoin in a budget-neutral manner, although no immediate purchasing program is established.
As this bill progresses, it will undergo further legislative scrutiny to determine its final form and implementation.
FAQ
What is the American Reserve Modernization Act of 2026 (ARMA)?
The ARMA is a bill approved by the House Financial Services Committee that aims to establish a federal Bitcoin reserve with a mandatory holding period of 20 years.
What does the 20-year holding period entail for Bitcoin in the federal reserve?
Under the proposed legislation, any Bitcoin deposited into the federal reserve must remain untouched for 20 years, prohibiting actions such as selling, swapping, or auctioning during this period.
What prompted the creation of the Strategic Bitcoin Reserve?
The creation of the Strategic Bitcoin Reserve was prompted by an executive order from President Donald Trump in March 2025, which called for the formal management of the federal government's digital assets.
How will the federal Bitcoin reserve ensure transparency and accountability?
The bill requires annual independent audits and public reporting of the reserve's holdings and transactions to ensure transparency and accountability.
What is the role of the Treasury and Commerce departments in relation to the federal Bitcoin reserve?
The Treasury and Commerce departments are tasked with studying the feasibility of acquiring more Bitcoin in a budget-neutral manner, although the bill does not establish an immediate purchasing program.