The U.S. House of Representatives proposes a 20-year holding period for strategic Bitcoin reserves

Mars Finance news: On June 5, according to the official website of the U.S. Congress, the full text of the U.S. House of Representatives’ “American Reserve Modernization Act” (H.R.8957, ARMA) has been released. The bill was introduced on May 21 by Alaska Representative Nicholas Begich and has now been referred to the House Committee on Financial Services for review. The bill’s main content includes: incorporating Bitcoin obtained by the government through criminal or civil forfeiture into a strategic Bitcoin reserve managed by the Treasury Department, setting a 20-year minimum holding period during which the Bitcoin may not be sold or otherwise disposed of; establishing a quarterly reserve proof mechanism and introducing third-party independent audits; and allowing states to voluntarily custody their Bitcoin in independent accounts within the Federal Reserve.

Regarding forward-looking provisions, the bill requires the Treasury Department and the Department of Commerce to jointly study, within 180 days, feasible pathways to increase Bitcoin holdings in a budget-neutral manner, including converting non-Bitcoin digital assets, forfeiture proceeds, voluntary donations, tax or tariff revenues, and utilizing mechanisms related to the Federal Reserve or gold certificates. In addition, the bill requires that forked assets or airdrops generated by addresses controlled by the government be properly safeguarded. Sales of forked/airdropped assets are prohibited within 5 years. After 5 years, market value will be assessed: the dominant asset (the one with the highest market capitalization) will be retained, and other assets may be disposed of (with the proceeds going to the national treasury). If an asset has unique strategic value, Congress may be advised to recommend retaining it. Analysts say that compared with the previously proposed “BITCOIN Act,” which required the purchase of 1 million Bitcoins, ARMA is more moderate and has higher political feasibility, but it still leaves room for future federal accumulation of Bitcoin.