US Lawmakers Advance Bill to Make Trump’s Bitcoin Reserve Law

U.S. lawmakers moved closer to formalizing President Donald Trump’s plan for a government-held Bitcoin program after the American Reserve Modernization Act of 2026 cleared the House Committee on Financial Services.

The bill, H.R. 8957, passed the committee on Wednesday in a 28–21 vote and would create a “Strategic Bitcoin Reserve” alongside a separate “Digital Asset Stockpile” at the Department of the Treasury. These reserves would cover federally held Bitcoin and other digital assets acquired through criminal or civil forfeiture.

Key takeaways

• The American Reserve Modernization Act of 2026 (H.R. 8957) advanced after a 28–21 vote in the House Financial Services Committee.
• It would set up Treasury-managed structures for forfeited Bitcoin and other digital assets, including a Strategic Bitcoin Reserve.
• Bitcoin held under the reserve would be required to remain in federal custody for at least 20 years.
• The bill includes mandatory accounting and transparency steps, such as quarterly “proof of reserve” reporting and third-party audits.
• While it formalizes federal custody, the text also emphasizes private ownership and self-custody rights for Bitcoin.

What H.R. 8957 would change for federal Bitcoin custody

H.R. 8957 aims to convert the concept of a strategic federal Bitcoin reserve into law. According to the bill’s framework described in coverage, the Strategic Bitcoin Reserve and Digital Asset Stockpile would sit within the U.S. Treasury and would apply to digital assets the government already holds or acquires through forfeiture proceedings.

Supporters argue that current federal storage practices are too fragmented to satisfy modern security and accountability standards. Representative Nicholas Begich, who introduced the legislation on May 21, said the federal government cannot allow Bitcoin to sit in inconsistent custody arrangements. He also argued that the approach creates cybersecurity risks and does not provide adequate accounting of what the government actually owns.

Accounting, transparency, and the “proof of reserve” requirement

A central feature of ARMA is accountability. The legislation would require federal agencies to deliver a complete accounting of digital assets they currently hold or control. It also sets out transparency measures intended to make federal crypto holdings easier to verify.

Under the bill, quarterly “proof of reserve” reports and third-party audits would be required. For investors and market participants, the significance is straightforward: clearer documentation around government-held supply can reduce uncertainty, support more reliable on-chain and off-chain reconciliation, and improve confidence in claims about who controls what.

The bill would also support a study into budget-neutral acquisition strategies for expanding the Strategic Bitcoin Reserve, a detail that matters because it frames future additions as an exercise in managing costs rather than an open-ended authorization.

How long Bitcoin would be held—and what remains under federal control

Another notable provision would require Bitcoin in the federal reserve to be held for a minimum of 20 years. That long time horizon suggests the legislation is designed less for short-term policy flexibility and more for creating a durable, long-lived component of federal reserves.

The bill would further direct that states be allowed to store their Bitcoin in the Federal Reserve, extending the idea of institutional custody beyond the federal government alone.

At the same time, the legislation includes language that preserves private participation in Bitcoin. It affirms private ownership and the right to self-custody, describing control of private keys as “fundamental to the principles of financial sovereignty, privacy, and personal liberty in the digital age.” That emphasis may be intended to assuage concerns that government custody could translate into broader restrictions on individual holding or managing Bitcoin.

Why the committee vote matters, and what comes next

Committee approval is a procedural milestone, not the end of the legislative process. After passing the House Committee on Financial Services, H.R. 8957 still must clear the full House and the Senate before it can reach the president’s desk.

The bill’s progress also arrives as observers continue to track how much Bitcoin the U.S. government holds. According to Arkham Intelligence, the U.S. government is estimated to hold 324,527 Bitcoin, valued at $24.7 billion at the time of writing. While estimates like this can evolve with new data, they underline why a clearer policy framework around government-held Bitcoin is likely to draw broad attention from both policymakers and market participants.

Policy advocates have already characterized the effort as historically significant for Bitcoin governance. Bitcoin Policy Institute executive director Connor Brown called the development a “genuinely historic step for Bitcoin policy” on X. Similarly, Strive CEO Matt Cole described it as potentially the single most important crypto legislation that could emerge from Washington, also posting on X.

Looking ahead: the details that could determine real-world impact

For now, the decisive next phase is whether lawmakers can move ARMA through both chambers, where amendments are likely and the exact implementation of quarterly “proof of reserve” reporting and custody rules could become a focal point. Investors and builders should watch for how the final bill defines custody, audits, and the mechanics of “budget-neutral” expansion—because those specifics will shape how credible, verifiable, and operationally workable the Strategic Bitcoin Reserve becomes.