Key TakeawaysLawmakers on the House Financial Services Committee approved the American Reserve Modernization Act (ARMA) with a 28-21 tallyUnder the legislation, government-owned Bitcoin cannot be sold for two decades minimumFederal holdings currently total approximately 324,527 Bitcoin valued near $24.7 billionTransparency provisions include quarterly proof-of-reserve disclosures and independent auditsFull House and Senate passage is required before the measure reaches the presidentCongressional lawmakers took a significant stride Wednesday toward codifying President Donald Trump’s Bitcoin reserve directive into federal statute.BREAKING: US House committee PASSES the Strategic Bitcoin Reserve bill.The bill would lock government held Bitcoin in a federal reserve for at least 20 years and require regular audits of US Bitcoin holdings. pic.twitter.com/YbiOzeBVfe— Bull Theory (@BullTheoryio) September 16, 2026The American Reserve Modernization Act of 2026 secured approval from the House Financial Services Committee through a 28-21 vote. Representative Nicholas Begich initially filed the measure in May.Key Provisions of the LegislationThis proposed law would establish both a Strategic Bitcoin Reserve and a Digital Asset Stockpile within the Department of the Treasury. These entities would manage digital currencies obtained via criminal and civil asset forfeiture proceedings.The measure imposes a mandatory 20-year holding period on Bitcoin stored in the federal reserve. Such extended commitment represents an unprecedented timeframe for government-held assets.Federal authorities presently control roughly 324,527 Bitcoin, worth approximately $24.7 billion based on data from Arkham Intelligence.Additional requirements mandate comprehensive reporting from all federal departments regarding their digital asset portfolios. Accountability mechanisms encompass quarterly proof-of-reserve documentation alongside independent third-party verification audits.The proposal further calls for research into fiscally neutral methods of expanding reserves without burdening American taxpayers. Individual states would gain authorization to deposit their Bitcoin holdings with the Federal Reserve system.The bill explicitly protects Americans’ rights to possess and manage their personal Bitcoin. It characterizes private key ownership as fundamental to both economic independence and individual freedom.Divided Congressional ResponseRepresentative Bryan Steil expressed support for the measure, emphasizing its potential to bolster reserve capacity while contributing to deficit reduction. He maintained that modernizing national reserves remains essential for maintaining global competitiveness.Connor Brown, executive director at the Bitcoin Policy Institute, characterized the committee’s decision as a watershed moment for cryptocurrency policy development.Dissenting voices emerged as well. Representative Bill Foster rejected the proposal, arguing that Bitcoin’s volatility and risk profile make it unsuitable for government investment portfolios.“I don’t think anyone believes that bitcoin is critical to the U.S. economy,” Foster said during the session.The legislative effort traces back over a year. Republicans Begich and Senator Cynthia Lummis originally unveiled a predecessor version titled the BITCOIN Act.Path Forward for the ProposalTrump’s 2025 executive directive initially created the reserve utilizing Bitcoin already in government possession through forfeiture actions. He simultaneously instructed Treasury and Commerce officials to identify cost-neutral approaches for additional acquisitions.Concerns surfaced in July regarding Treasury’s statutory authority to administer the reserve, Bloomberg reported.While the committee approval represents progress, the legislation must still navigate votes in both the complete House of Representatives and the Senate before landing on the president’s desk for final signature.The post U.S. House Committee Advances Bill to Establish Strategic Bitcoin (BTC) Reserve appeared first on Blockonomi.