A bill introduced in the US Congress this week would require Bitcoin held by American entities to be locked for 20 years. The proposal, if enacted, could fundamentally alter the trajectory of cryptocurrency in the country — potentially stifling growth, limiting adoption, and reshaping market dynamics for the foreseeable future.
The 20-year freeze
The legislation mandates that any Bitcoin owned or controlled by US-based individuals, companies, or financial institutions be placed in a government-supervised custodian and held for a full two decades. No trading, lending, or transferring would be allowed during that period. The bill doesn't target other cryptocurrencies — only Bitcoin.
Why now?
Lawmakers behind the bill have not publicly detailed their rationale, but the proposal surfaces amid ongoing debates about Bitcoin's volatility and its use in illicit finance. The 20-year window appears aimed at forcing long-term holding, theoretically reducing price swings and curbing speculation. Critics, however, see it as an overreach that would destroy Bitcoin's utility as a liquid asset.
Industry pushback
The proposal has drawn sharp criticism from crypto advocacy groups, who argue it would choke innovation and drive Bitcoin activity offshore. Exchanges and custodians would face immense operational hurdles — or be forced to simply stop serving US clients. The timing isn't great: the bill lands just as institutional interest in crypto is gaining real traction.
Path to passage
The bill faces an uphill battle. It must clear committee hearings, survive amendments, and pass both chambers before reaching the president's desk. With midterm elections approaching, the political calculus is uncertain. A vote could come as early as the fall, but opposition is expected from both industry-friendly Republicans and some Democrats wary of government overreach.
For now, the crypto industry watches closely. The next concrete step: a scheduled hearing in the House Financial Services Committee next month, where the bill's sponsors will face their first round of questioning.
