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The House Financial Services Committee voted Wednesday to advance the American Reserve Modernization Act, a bill that would codify President Trump's plan for a permanent strategic bitcoin reserve into law. The 19-page measure directs the Treasury Department to maintain a "secure Bitcoin storage facility" and includes language for acquiring more bitcoin over five years using "budget-neutral strategies." It also directs Treasury to build a separate stockpile for other digital assets.
"This is a smart financial strategy that will increase our reserve strength while also reducing our deficit," said Rep. Bryan Steil, R-Wis., during the session. "Digital assets continue to transform the global market. We must modernize our strategic reserves to maintain American dominance and financial stability."
The bill traces back to legislation first introduced by Rep. Nick Begich and Sen. Cynthia Lummis over a year ago as the BITCOIN Act. Trump laid out the reserve plan in 2025, funded mainly through bitcoin the government already holds via criminal and civil forfeitures, with Treasury and Commerce tasked with finding budget-neutral acquisition paths that cost taxpayers nothing.
Why it matters
Codifying the reserve moves it from an executive order, which a future administration could reverse, to statute. That would make the US government's bitcoin holdings permanent policy and set up a structural, ongoing federal bid for BTC. Questions remain: Bloomberg reported in July that some doubt Treasury can legally manage the reserve at all.
Market impact
Passage out of committee is an early step, not law. Opposition surfaced immediately, with Rep. Bill Foster, D-Ill., arguing bitcoin's volatility makes it a poor reserve asset. "I don't think anyone believes that bitcoin is critical to the U.S. economy," Foster said. Watch for floor scheduling and whether Senate counterpart legislation gains traction, the real gate for institutional perception of sovereign BTC accumulation.
Frequently asked questions
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What is the American Reserve Modernization Act?
A bill advanced by the House Financial Services Committee that would codify Trump's strategic bitcoin reserve into law, directing the Treasury Department to maintain a secure Bitcoin storage facility and acquire more bitcoin over five years using budget-neutral strategies.
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How would the US government acquire more bitcoin without costing taxpayers?
The reserve is funded mainly through bitcoin the government already owns via criminal and civil forfeitures, and the bill directs Treasury and Commerce to develop budget-neutral acquisition strategies that do not cost taxpayers.
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Was this bill previously known as the BITCOIN Act?
Yes. Rep. Nick Begich and Sen. Cynthia Lummis introduced the original legislation over a year ago as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, or BITCOIN Act.
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What are the main objections to the strategic bitcoin reserve?
Rep. Bill Foster, D-Ill., argued bitcoin is too risky and volatile to be a good reserve investment, saying "I don't think anyone believes that bitcoin is critical to the U.S. economy." Bloomberg also reported questions in July over whether Treasury can legally manage the reserve.
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Why does codifying the reserve matter for bitcoin holders?
Writing the reserve into statute, rather than leaving it as a 2025 executive order, would make the federal bitcoin holdings permanent policy that a future administration could not easily reverse, creating a structural sovereign bid for BTC.
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