US House Committee Passes Strategic Bitcoin Reserve Bill, Banning Sales for 20 Years

The Strategic Bitcoin Reserve Bill has passed the US House. [Photo: Shutterstock]

According to Digital Times reporter Lee Yun-seo, the US House Financial Services Committee approved a bill that prohibits the federal government from selling or transferring its held bitcoin for 20 years. The bill, known as the American Reserve Modernization Act (ARMA), aims to establish bitcoin reserves under federal law.

The vote was 28-21 along party lines, with Republicans stating the committee processed H.R.8957. Key provisions include a 20-year ban on selling or transferring government-held bitcoin acquired through seizures and other means. The Treasury must establish a storage system within 180 days and undergo independent audits.

The bill seeks to formalize an executive order issued by former President Donald Trump in March 2025, which could be reversed by future administrations but would require congressional approval if enacted into law. This aims to separate the federal bitcoin reserve strategy from political changes.

Compared to a similar Senate bill introduced by Senator Sinia Lumis that mandates annual purchases of 200,000 BTC for five years totaling one million BTC, this House bill does not require new government acquisitions. The legislative path remains uncertain as the House is expected to recess before November's midterm elections, delaying final passage.

Market attention now focuses on whether the Treasury will disclose its bitcoin holdings following independent audits and how the House bill interacts with the Senate's more aggressive acquisition plan. Current estimates suggest the federal government holds approximately 198,000 BTC, though this has never been officially verified.