Washington's broader crypto push just suffered a major defeat, but the Strategic Bitcoin Reserve is moving separately through Congress.
The House Financial Services Committee has taken up H.R. 8957, the American Reserve Modernization Act, legislation designed to put a federal Strategic Bitcoin Reserve on a statutory footing and establish rules for managing government-held BTC. The bill was introduced in May and referred to the committee.
The timing is striking. Just days earlier, the Senate failed to advance the CLARITY Act in a 49–50 procedural vote, falling short of the 60 votes needed to move forward.
Government Bitcoin Could Be Locked Up for 20 Years
One of the most significant provisions is how long the government would hold its Bitcoin.
Under the proposal, BTC deposited into the Strategic Bitcoin Reserve would generally be subject to a minimum 20-year holding period, limiting the government's ability to sell or otherwise dispose of those assets.
The legislation also seeks greater transparency around federal Bitcoin holdings, including reporting and reserve-management requirements.
That could matter to Bitcoin markets because government BTC has historically represented a potential source of selling pressure.
But Washington Isn't About to Buy 1 Million BTC
The bill is also notable for what it doesn't mandate.
Rather than immediately directing the Treasury to purchase enormous amounts of Bitcoin, the legislation focuses on consolidating and managing federal holdings while exploring ways additional BTC could potentially be acquired without increasing taxes, borrowing or the federal deficit.
That makes it different from some earlier reserve proposals built around much larger government Bitcoin purchases.
CLARITY Failed, but Bitcoin Legislation Didn't Stop
The contrast with the CLARITY Act is important.
The CLARITY Act was designed to create a much broader framework governing the U.S. digital asset market. Its Senate setback contributed to Bitcoin falling below $75,000 and helped trigger a wave of leveraged selling.
Roughly $300 million in crypto longs were liquidated shortly after the failed vote, highlighting how closely traders were watching Washington.
The Strategic Bitcoin Reserve legislation is much narrower. Instead of rewriting rules for the entire crypto industry, it focuses specifically on how the federal government holds and manages Bitcoin.