The 119th US Congress has introduced a landmark crypto bill. On May 21, 2026, Representative Nicholas J. Begich (R-AK) along with a bipartisan group filed the American Reserve Modernization Act of 2026 (H.R. 8957). The legislation directs the Treasury Secretary to establish two separate custodial facilities within 180 days: a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
20-Year HODL: No Selling Seized Bitcoin
The most eye-catching provision is the mandatory holding period. All Bitcoin obtained by the US government through criminal or civil forfeiture must be deposited into the Strategic Bitcoin Reserve and held for a minimum of 20 years from the deposit date. During this period, the Treasury is absolutely prohibited from selling, exchanging, staking, or otherwise disposing of the Bitcoin. After the lock-up expires, the Treasury Secretary can propose releasing up to 10% every two years, subject to a market impact assessment.
For forked coins and airdrops received by government-controlled addresses, a 5-year lock-up applies. After that, the Treasury keeps only the highest market cap asset and liquidates the rest unless the asset has unique utility justifying a retention exception.
Two Separate Pools for Bitcoin vs Other Crypto
The Strategic Bitcoin Reserve is a high-security vault specifically for Bitcoin (called "Qualifying Bitcoin"). The Treasury must coordinate with the Department of Defense and Homeland Security on physical and cyber protection. The separate Digital Asset Stockpile manages all other cryptocurrencies. Non-Bitcoin digital assets can be sold or swapped, but the proceeds can only be used to buy more Bitcoin for the reserve or to reduce the national debt.
Proof-of-Reserve for Full Transparency
To fix past criticism over opaque handling of seized crypto, H.R. 8957 mandates a public cryptographic Proof-of-Reserve system. The system must regularly disclose actual holdings to the public, ensuring accountability. Any future disposal must be pre-announced with schedules and volumes to minimize market disruption.
Although still in the early "introduced" phase and far from a vote, this bill marks the first time US lawmakers systematically incorporate Bitcoin into the national balance sheet. If enacted, it would not only overhaul how the US handles confiscated digital assets but could trigger a new geopolitical race among sovereign states to accumulate Bitcoin.