H.R. 8957: American Reserve Modernization Act of 2026

This bill, known as the American Reserve Modernization Act of 2026, proposes several key initiatives regarding the management of Bitcoin and other digital assets by the U.S. Federal Government.

Establishment of Reserves

The bill mandates the establishment of two main structures:

• Strategic Bitcoin Reserve: A secure facility within the Department of the Treasury for the safekeeping of Bitcoin, specifically designed for Bitcoin that has been forfeited through federal legal proceedings.
• Digital Asset Stockpile: A separate entity for managing other non-Bitcoin digital assets acquired by the federal government.

Oversight and Security

The Secretary of the Treasury will oversee the ongoing monitoring and auditing of both reserves. To ensure their security, the bill requires both physical security measures and cybersecurity protocols to protect these assets. The Secretary will also collaborate with various defense and security departments to enhance security standards.

Management of Assets

All qualifying Bitcoin acquired by the government must be stored in the Strategic Bitcoin Reserve, while other non-Bitcoin digital assets will go into the Digital Asset Stockpile. The Secretary will manage the Digital Asset Stockpile and may sell or convert these assets under specific conditions aimed at either enhancing the Bitcoin Reserve or reducing national debt, ensuring transactions are transparent.

Handling of Forks and Airdrops

Digital assets obtained through forks or airdrops must be accounted for and stored appropriately. Such assets cannot be sold within five years unless authorized by law. After this period, there will be evaluations to determine which assets have the highest market capitalization for retention or disposal.

Regulatory Authority

The Secretary is empowered to create regulations to facilitate the implementation of this act, including custody protocols and public reporting requirements for Bitcoin transactions.

Minimum Holding Period

Bitcoin held within the Strategic Bitcoin Reserve must be kept for a minimum of 20 years, during which it cannot be sold or otherwise disposed of. Recommendations regarding any potential sale of a portion of these holdings will be submitted to Congress two years before the end of this holding period.

Proof of Reserve System

A Proof of Reserve system will be established to ensure transparency in managing the Strategic Bitcoin Reserve. This system will include regular public reporting and independent audits to verify the accuracy and integrity of these reports.

Consolidation of Holdings

All federal agencies are required to report their Bitcoin and digital asset holdings, which will be transferred to the Strategic Bitcoin Reserve or Digital Asset Stockpile once they are operational. There are restrictions on selling or encumbering these assets during this transition period, except in cases of national security or legal obligations.

State Participation

States will have the option to voluntarily store their Bitcoin holdings in segregated accounts within the Strategic Bitcoin Reserve, with specific terms and conditions outlined in mutual agreements with the federal government.

Study on Budget-Neutral Acquisition

There is a provision for studying the potential for budget-neutral strategies for acquiring additional Bitcoin over the next five years, without increasing the national debt. This study will evaluate various methods for acquiring Bitcoin cost-effectively.

Protection of Private Property Rights

The bill affirms that the federal government cannot impair or seize lawfully acquired Bitcoin holdings from individuals. Furthermore, it recognizes the rights of individuals to manage their digital assets independently.

Amendments to Existing Laws

There will be modifications to existing laws to ensure that Bitcoin transactions are accounted for within financial reports of certain funds.

Relevant Companies

• COIN (Coinbase Global, Inc.): As a major cryptocurrency exchange, any federal accumulation of Bitcoin reserves could influence market dynamics and trading activity.
• MARA (Marathon Digital Holdings, Inc.): This company could be impacted by increased demand for Bitcoin mining or changes in market perception regarding Bitcoin in government reserves.
• RIOT (Riot Blockchain, Inc.): Similar to Marathon, changes in government policy surrounding Bitcoin could impact the operations and market positioning of this blockchain and Bitcoin mining company.