Representative Nick Begich introduced the American Reserve Modernization Act on Thursday, proposing legislation to establish a Strategic Bitcoin Reserve within the US Department of the Treasury. The bill consolidates custody of digital assets across federal agencies under Treasury oversight, sourcing holdings from forfeitures, penalties, and lawful government proceedings. Bitcoin trades at $77,738, down 5% over the past week and 38% below its $126,000 all-time high.
Legislative Push Follows Executive Order Delay
The American Reserve Modernization Act arrives as President Trump’s March 2025 executive order to establish a strategic Bitcoin reserve remains not yet fully operational. Begich framed the legislation as a mechanism to “create a strategic Bitcoin reserve and update how the federal government handles digital assets.” The bill mandates a minimum 20-year holding period for Bitcoin in the reserve, locking in long-term government commitment. Republican lawmaker Burgess Owens supports the measure, arguing it ensures the US “responds from a position of strength, with leadership and long-term planning.” The legislative approach addresses gaps left by executive action, providing statutory authority and budget parameters that executive orders cannot deliver alone.
Bipartisan Momentum in Digital Asset Policy
The American Reserve Modernization Act gains traction alongside the Senate Banking Committee’s passage of the CLARITY Act, signaling bipartisan appetite for crypto infrastructure legislation. The bill includes provisions for a separate Digital Asset Stockpile to manage federally held digital assets beyond Bitcoin. A dedicated study on budget-neutral acquisition methods aims to expand reserves without raising taxes or increasing deficit spending. This dual-track approach separates strategic Bitcoin holdings from speculative or opportunistic digital asset management, clarifying federal intent. The legislative pairing suggests Capitol Hill is moving beyond ad-hoc digital asset handling toward systemic policy frameworks.
Treasury Custody and Long-Term Reserve Strategy
Centralizing digital asset custody under Treasury oversight consolidates what was previously fragmented across multiple agencies. The 20-year minimum holding period for Bitcoin signals institutional commitment to asset accumulation over short-term volatility. Owens criticized Washington’s historical dismissal of Bitcoin as “temporary,” suggesting the reserve codifies a shift in federal perception. Budget-neutral acquisition mechanisms allow the government to grow holdings from forfeitures and penalties without legislative appropriations. This structure mirrors traditional strategic reserves like the Strategic Petroleum Reserve, applying tested governance models to digital assets.
Next Steps and Operational Gaps
The bill’s passage through the House remains pending, with no official timeline disclosed. Trump’s March 2025 executive order continues stalled implementation, leaving operational details undefined. The American Reserve Modernization Act could provide the legislative scaffolding needed to operationalize executive intent. Burgess Owens and other supporters must navigate committee review and floor dynamics. The bill’s success hinges on demonstrating budget neutrality and separating strategic reserve policy from broader crypto regulation debates currently pending in the Senate.
