House committee moves to codify Trump's Strategic Bitcoin Reserve

The House Financial Services Committee advanced a bill to establish a strategic bitcoin (BTC) reserve, which would codify President Donald Trump's plan to create permanent bitcoin holdings. 

On Wednesday, the panel voted to move forward with the American Reserve Modernization Act, which would direct the Treasury Department to maintain a "secure Bitcoin storage facility," according to the 19-page bill. 

"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 to advance the bill and others. "Digital assets continue to transform the global market. We must modernize our strategic reserves to maintain American dominance and financial stability." 

Republicans Rep. Nick Begich and Sen. Cynthia Lummis earlier introduced the bill over a year ago when it was called the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act," or BITCOIN Act. The legislation includes language for acquiring more bitcoin over five years using "budget-neutral strategies," and directs the Treasury to create a digital asset stockpile for other digital assets. 

Trump laid out his plan for that reserve early on in his presidency in 2025, funded mainly through bitcoin already owned by the government through criminal or civil forfeitures, and a separate digital asset stockpile. The order also directed the Treasury Department and Commerce Department to come up with budget-neutral strategies for acquiring bitcoin that will not cost taxpayers.

Questions were later raised over whether Treasury can legally manage the reserve, Bloomberg reported in July. 

Some opposed the bill. Rep. Bill Foster, D-Il., voiced concerns about bitcoin not being a good investment due to its riskiness and volatility. 

"I don't think anyone believes that bitcoin is critical to the U.S. economy," Foster said.