Rep. Nicholas J. Begich (R-AK) introduced H.R. 8957, the American Reserve Modernization Act of 2026, on May 21, 2026. The proposal would establish a Treasury-managed Strategic Bitcoin Reserve and impose a minimum 20-year holding period on BTC USD placed in it, according to the bill text published on Congress.gov.
The timing of that holding period depends on when the Bitcoin is acquired and deposited. Under Section 5, Bitcoin acquired and deposited before enactment would be subject to a 20-year period measured from the date the act becomes law. Bitcoin acquired and deposited after enactment would be subject to a 20-year period measured from its date of deposit in the reserve.
The measure remains introduced and was referred to the House Committee on Financial Services on May 21. It has not passed the House or Senate and has not been signed into law, so its proposed requirements do not currently bind Treasury or other federal agencies.
Watch: @RepBryanSteil in support of H.R. 8957:
"We cannot allow Bitcoin to be held by the federal government to languish in fragmented and inconsistent custody. It poses unacceptable, unacceptable cybersecurity risks and fails to give an adequate accounting of what the federal… pic.twitter.com/Zrhno96V1v
— Financial Services GOP (@FinancialCmte) September 16, 2026
Key Takeaways From the American Reserve Modernization Act and What Does it Mean for America’s BTC USD Strategic Reserve?
- Reserve structure: Treasury would have 180 days after enactment to establish a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile for non-Bitcoin assets.
- Initial deposits: Qualifying Bitcoin the federal government acquires would have to be deposited in the Strategic Bitcoin Reserve.
- Holding period: The 20-year clock would run from enactment for Bitcoin acquired and deposited before enactment, and from deposit for Bitcoin acquired and deposited afterward.
- Custody and oversight: The Treasury Secretary would oversee monitoring, auditing, physical security, and cybersecurity, with consultation involving Defense, Homeland Security, and industry experts.
- Status: The bill is a proposal, not current law.
Policy Mechanics: How the Proposed Strategic Bitcoin Reserve Would Work
The bill mandates the Treasury Secretary to establish a secure Bitcoin storage facility for qualifying Bitcoin holdings, defined as Bitcoin forfeited in legal proceedings or received as civil monetary penalties. All qualifying Bitcoin must be deposited in this reserve, while other digital assets go into a separate Digital Asset Stockpile.
Treasury has the authority to manage the non-Bitcoin stockpile through sale or conversion, with proceeds directed solely to increasing Bitcoin Reserve holdings or reducing national debt. The bill also requires a public cryptographic proof-of-reserve system, quarterly reports, and oversight by an independent auditor.
Additionally, the bill requires accounting for and proper storage of assets from BTC USD forks or airdrops, with restrictions on their sale or disposal in the first five years unless authorized by law.
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Why the 20-Year Holding Rule Matters for BTC USD Custody
The bill outlines a policy rationale for a Strategic Bitcoin Reserve, viewing Bitcoin as a decentralized, scarce digital asset that can enhance national reserves and bolster the dollar’s global standing.
The central constraint is a holding requirement, during which Bitcoin cannot be sold or transferred. Before the holding period ends, the secretary must advise Congress on whether to continue holding or gradually release some assets.
After the holding period, Congress may sell up to 10% of reserve assets every two years. Additionally, a study is mandated within a year of enactment to explore conditions for early sales based on national security and financial stability.
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Risk & Counterargument: Volatility, Flexibility and Implementation Risks
A long holding requirement presents a trade-off: supporters see it as essential for a long-term reserve strategy, while critics question government flexibility if conditions change. The bill addresses this by requiring a study of early-sale conditions and exceptions.
Implementation will require the Treasury to set up custody arrangements, security measures, accounting procedures, public reporting, and interagency coordination. Treasury has 180 days to establish the reserve, and federal agencies have 60 days to report their Bitcoin and digital assets.
Until the new facilities are operational, agencies will retain custody under current law. During this interim period, the sale, swap, or other disposition of Bitcoin will generally be prohibited, with exceptions for national security, court orders, and victim returns.
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