Rep. Nick Begich introduced legislation this week to establish a Strategic Bitcoin Reserve under the Treasury Department with a strict 20-year lockup period. The bill also mandates Treasury management of all federal digital assets seized through forfeitures and penalties. It comes as President Trump’s March 2025 executive order for a Bitcoin reserve remains unimplemented.
Two-Tiered Federal Crypto Strategy
The American Reserve Modernization Act splits government digital assets into two distinct pools. Bitcoin holdings from law enforcement seizures would go into the Strategic Reserve with the two-decade lockup. Other digital tokens would land in a separate Digital Asset Stockpile managed by the Treasury. This structure aims to improve transparency for assets the government already holds through legal actions.
Trump Order Still in Limbo
President Trump signed an executive order in March 2025 requiring a strategic Bitcoin reserve. But twenty months later, no operational framework exists. The new bill would force implementation through legislation rather than executive action. Treasury officials haven't commented on why the 2025 order stalled despite clear presidential direction.
Senate Backs Broader Crypto Framework
The Senate Banking Committee recently passed the bipartisan CLARITY Act as part of wider crypto policy efforts. This advance signals growing congressional momentum for formalizing federal digital asset rules. Begich's proposal now enters this active legislative environment where Treasury oversight mechanisms are gaining traction.
Unfunded Mandate Question
The bill requires the Treasury to study budget-neutral methods for expanding reserves without new taxes or increased debt. It doesn't allocate funding or provide immediate solutions. How the department will execute this study without operational authority remains unclear. Treasury hasn't indicated when the analysis would begin.
Next steps hinge on whether the House Financial Services Committee schedules hearings. The Treasury must now produce its mandated funding study, a process likely to stretch through 2026.
