US Lawmakers Propose Major Shift in Bitcoin Reserve Strategy
A newly introduced bipartisan bill in the US Congress, titled the "American Reserve Modernization Act of 2026," outlines a significant update to how the federal government could manage Bitcoin holdings as part of its national reserves.
Key Change: From Mandated Purchase to Asset Management
Departing from previous legislative efforts, the proposed act removes the controversial requirement for the government to purchase one million Bitcoin. This pivot represents a fundamental shift in approach.
The focus now centers on strategically managing Bitcoin already in, or expected to come into, federal possession—primarily through criminal and civil forfeiture proceedings. This establishes the reserve based on law enforcement activities rather than direct market acquisition.
A 20-Year Lock-Up with Strict Disposal Rules
The draft legislation mandates a minimum twenty-year holding period for any Bitcoin designated for the strategic reserve. During this time, the assets cannot be sold, exchanged, auctioned, used as collateral, or otherwise disposed of.
After the lock-up expires, the Secretary of the Treasury may recommend selling up to ten percent of the reserve holdings over any two-year period. This provision aims to balance long-term commitment with future fiscal flexibility.
Creating a Separate Digital Asset Inventory
The bill also proposes establishing an independent digital asset inventory to manage other cryptocurrencies held by the federal government. This indicates a broader legislative intent to create a structured framework for diverse digital assets.
Enhanced Transparency and Audit Mandates
To ensure accountability, the act would require the government to publish quarterly proof-of-reserve reports. Furthermore, all Bitcoin holdings must undergo regular third-party audits. These measures are designed to bolster transparency and trust in the management of state-held digital assets.
Strategic Rationale: Integrating Digital Assets into Modern Reserves
Proponents of the bill argue that strategic digital assets like Bitcoin should not be hastily liquidated. Instead, they should be held long-term as a component of a modernized national reserve system. This stance reflects a growing recognition among some policymakers of the enduring potential value of digital currencies within sovereign fiscal strategy.
The introduction of this bill is poised to spark extensive debate among policymakers, the financial sector, and the digital currency community, making its progression a key development to monitor.