,,ii #aahth ,,congress #b;d ,session ,s4 #diab ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ca1 #bjbd,ms4 ,lummis introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to establish a ,strategic ,bitcoin ,reserve and other programs to ensure the transparent management of ,bitcoin holdings of the ,federal ,government1 to offset costs utilizing certain resources of the ,federal ,reserve ,system1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,boosting ,innovation1 ,technology1 and ,competitiveness through ,optimized ,investment ,nationwide ,act of #bjbd or the ,,bitcoin ,act of #bjbd4 #b4 ,findings ,congress finds the following3 7#a7 ,the global financial landscape is rapidly evolving1 with digital assets playing an increasingly significant role in the world economy4 7#b7 ,bitcoin has demonstrated resilience1 widespread adoption1 and served as a medium of exchange and a store of value for more than a decade4 7#c7 ,just as gold reserves have historically served as a cornerstone of national financial security1 ,bitcoin represents a digital-age asset capable of enhancing the financial leadership and security of the ,united ,states in the #bast century global economy4 7#d7 ,the acquisition and long-term storage of substantial quantities of ,bitcoin by the ,united ,states can strengthen the financial condition of the ,united ,states1 providing a hedge against economic uncertainty and monetary instability4 7#e7 ,bitcoin1 as a decentralized and finitely scarce digital asset1 offers unique properties that complement existing national reserves1 strengthening the position of the ,united ,states dollar in the global financial system4 7#f7 ,diversification of the national assets of the ,united ,states to include ,bitcoin can enhance financial resilience and position the ,united ,states at the forefront of global financial innovation4 #c4 ,definitions ,in this ,act3 7#a7 ,airdrop ,the term airdrop means a gratuitous distribution of digital assets to holders of ,bitcoin in a broad1 equitable1 and non-discretionary manner4 7#b7 ,bitcoin ,purchase ,program ,the term ,bitcoin ,purchase ,program means the program established under section #e7;a74 7#c7 ,cold storage ,the term cold storage means a method of storing private keys required to transact in ,bitcoin1 with a nexus to a secure physical location1 protected from unauthorized access and isolated from any network connections4 7#d7 ,fork ,the term fork means a change to the consensus mechanism of a distributed ledger that creates a separate ledger1 resulting in a new digital asset that shares a common transaction history with ,bitcoin up to the point of the change4 7#e7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#f7 ,strategic ,bitcoin ,reserve ,the term ,strategic ,bitcoin ,reserve means the decentralized network of secure ,bitcoin storage facilities established pursuant to section #d7;a74 #d4 ,establishment of ,strategic ,bitcoin ,reserve 7a7 ,establishment ,the ,secretary shall establish a decentralized network of secure ,bitcoin storage facilities distributed across the ,united ,states1 collectively to be known as the ,strategic ,bitcoin ,reserve for the cold storage of ,government ,bitcoin holdings4 7b7 ,purpose ,the ,strategic ,bitcoin ,reserve shall be used for the generation1 safekeeping1 and management of ,bitcoin private keys associated with ,government ,bitcoin holdings4 7c7 ,oversight ,the ,secretary shall be responsible for the ongoing monitoring and auditing of the holdings of the ,strategic ,bitcoin ,reserve4 7d7 ,decentralization 7#a7 ,in general ,the ,secretary shall ensure that the facilities of the ,strategic ,bitcoin ,reserve are geographically dispersed throughout the ,united ,states1 to minimize the risk of simultaneous compromise and to enhance the resilience of the ,strategic ,bitcoin ,reserve4 7#b7 ,location selection ,the ,secretary shall select the locations for the facilities described in paragraph 7#a7 based on a comprehensive risk assessment1 prioritizing geographic diversity1 security1 and accessibility4 7e7 ,security measures 7#a7 ,in general ,the ,secretary shall implement state-of-the-art physical and digital security measures to protect the ,strategic ,bitcoin ,reserve4 7#b7 ,consultation ,the ,secretary shall consult and collaborate with the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 and industry experts to ensure the highest level of physical and digital security for the ,strategic ,bitcoin ,reserve4 7f7 ,retention of forks and airdrops 7#a7 ,in general ,the ,secretary shall ensure that1 with respect to ,bitcoins controlled by the ,strategic ,bitcoin ,reserve1 all digital assets resulting from forks of the ,bitcoin distributed ledger and digital assets distributed via airdrops to ,bitcoin addresses are accounted for and reasonably stored in the ,strategic ,bitcoin ,reserve4 7#b7 ,prohibition on immediate sale ,no digital asset stored in the ,strategic ,bitcoin ,reserve that is the result of a fork or airdrop may be sold or otherwise disposed of during the #e-year period beginning on the date of the fork or airdrop1 unless explicitly authorized by law4 #e4 ,bitcoin ,purchase ,program 7a7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a ,bitcoin ,purchase ,program which shall-- 7,a7 purchase not more than #bjj1jjj ,bitcoins per year over a #e-year period1 for a total acquisition of #a1jjj1jjj ,bitcoins2 7,b7 conduct purchases in a transparent and strategic manner to minimize market disruption2 and 7,c7 hold ,bitcoin acquired under this section in trust for the ,united ,states1 as provided in this section4 7#b7 ,flexibility relating to purchases ,the ,secretary shall1 by rule1 establish a procedure to adjust the purchase schedule set forth under paragraph 7#a71 if necessary1 based on prevailing market conditions4 7#c7 ,transfer offset ,any ,bitcoin transferred to the ,strategic ,bitcoin ,reserve under section #g may offset the purchase requirements under paragraph 7#a74 7b7 ,deposit ,all ,bitcoins purchased under the ,bitcoin ,purchase ,program shall be placed in the ,strategic ,bitcoin ,reserve4 7c7 ,minimum ,holding ,period 7#a7 ,in general ,to ensure the long-term stability and security of the ,strategic ,bitcoin ,reserve1 the ,secretary shall hold all ,bitcoin acquired through the ,bitcoin ,purchase ,program for not less than #bj years4 7#b7 ,retention of ,bitcoin ,during the minimum holding period under paragraph 7#a71 no ,bitcoin held in the ,strategic ,bitcoin ,reserve may be sold1 swapped1 auctioned1 encumbered1 or otherwise disposed of for any purpose other than retiring outstanding ,federal debt instruments4 7#c7 ,recommendations after holding period 7,a7 ,in general ,on the date that is #a year before the end of the minimum holding period under paragraph 7#a71 the ,secretary shall submit to ,congress recommendations on whether to continue to voluntarily hold or to allow for the gradual and controlled release of a portion of the holdings of the ,strategic ,bitcoin ,reserve4 7,b7 ,recommendation ,upon the expiration of the minimum holding period1 the ,secretary shall not recommend selling more than #aj percent of the assets of the ,strategic ,bitcoin ,reserve during any #b-year period4 7d7 ,public reports ,not later than #a year after the date of enactment of this ,act1 and annually thereafter for a period of #bj years1 the ,secretary shall publish an annual public report on the status of the ,bitcoin ,purchase ,program4 #f4 ,proof of ,reserve ,system ,to ensure transparency and accountability in the management of the ,strategic ,bitcoin ,reserve1 the ,secretary shall establish a quarterly ,proof of ,reserve system of public cryptographic attestation under which-- 7#a7 the ,secretary shall-- 7,a7 publish quarterly reports on the ,strategic ,bitcoin ,reserve that include detailed information on the total holdings1 transactions1 and demonstrated control of private keys relating to the ,strategic ,bitcoin ,reserve1 including a public cryptographic attestation2 7,b7 make the quarterly reports available to the public on an official website of the ,department of ,treasury2 and 7,c7 select an independent1 third-party auditor with expertise in cryptographic attestations to verify the accuracy and integrity of the quarterly reports2 and 7#b7 the ,comptroller ,general of the ,united ,states shall1 to ensure compliance with this ,act1 conduct regular oversight of-- 7,a7 the ,strategic ,bitcoin ,reserve2 7,b7 the quarterly reports under paragraph 7#a77;,a72 and 7,c7 the audits under paragraph 7#a77;,c74 #g4 ,consolidation of ,government ,bitcoin ,holdings ,beginning on the date of enactment of this ,act1 any ,bitcoin under the control of any ,federal agency1 including the ,united ,states ,marshal ,service1 shall-- 7#a7 not be sold1 swapped1 auctioned1 or otherwise encumbered2 and 7#b7 upon the acquisition of legal title to such ,bitcoin 7including after a final1 unappealable judgment is entered in a criminal or civil forfeiture action in favor of the ,federal agency71 be transferred by the head of such ,federal agency to the ,strategic ,bitcoin ,reserve4 #h4 ,voluntary ,state ,participation and ,segregated ,accounts 7a7 ,voluntary ,state participation ,the ,secretary shall establish a program that allows a ,state to voluntarily participate in storing the ,bitcoin holdings of the ,state in the ,strategic ,bitcoin ,reserve in a segregated account4 7b7 ,participation requirements ,a ,state choosing to participate in the program established under subsection 7a7 shall sign a contractual agreement outlining the terms and conditions of participation1 which shall include-- 7#a7 the responsibilities of both the ,state and the ,strategic ,bitcoin ,reserve in managing and securing the ,bitcoin holdings of the ,state in the segregated account of the ,state2 7#b7 a requirement that the ,state1 in coordination with the ,secretary1 develop and implement appropriate security protocols and access controls to ensure the integrity and confidentiality of the segregated account of the ,state2 and 7#c7 retention of title1 and all attendant legal interests1 by the ,state in the ,bitcoin held in the segregated account1 including title to any digital asset that is the result of a fork or airdrop relating to such ,bitcoin4 7c7 ,withdraw or transfer ,each ,state participating in the program established under subsection 7a7 shall have the right to withdraw or transfer the contents of the segregated account of the ,state within the ,strategic ,bitcoin ,reserve1 subject to the terms and conditions in the signed contractual agreement under subsection 7b7 and any applicable ,federal regulations4 #i4 ,offsetting the cost of the strategic ,bitcoin reserve 7a7 ,discretionary surplus funds of federal reserve banks ,section #g7;a77#c77;,a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bhi7;a77#c77;,a77 is amended by striking #f1hbe1jjj1jjj;and inserting #b1djj1jjj1jjj4 7b7 ,use of remittances to treasury 7#a7 ,in general ,notwithstanding the second subsection 7b7 of section #g of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bij71 for fiscal years #bjbe through #bjbi1 if the ,federal reserve banks remit net earnings to the general fund of the ,treasury during that period1 the first #f1jjj1jjj1jjj of these remittances 7before repayment of any deferred asset7 in a fiscal year shall be utilized by the ,secretary for the implementation of the ,bitcoin ,purchase ,program1 pursuant to the purposes set forth under section #e4 7#b7 ,exception ,paragraph 7#a7 shall not apply if the ,federal ,reserve banks do not remit net earnings in any given fiscal year during the period of fiscal years #bjbe through #bjbi4 7c7 ,federal reserve system gold certificates ,not later than #ahj days after the date of enactment of this ,act1 the ,federal reserve banks shall tender all outstanding gold certificates in their custody to the ,secretary4 ,not later than #ij days after the tender of the last such certificate1 the ,secretary shall issue new gold certificates to the ,federal reserve banks that reflect the fair market value price of the gold held against such certificates by the ,treasury1 as of the date specified by the ,secretary on each new gold certificate4 ,upon issue by the ,secretary1 each ,federal reserve bank that receives a new gold certificate shall remit the difference in cash value between the old and new gold certificates to the ,secretary for deposit in the general fund within #ij days4 7d7 ,conforming amendment ,section #eaag7;b7 of title #ca1 ,united ,states ,code1 is amended by striking 7for the purpose of issuing those certificates1 of #db and two-ninths dollars a fine troy ounce74 #aj4 ,protection of ,private ,property ,rights 7a7 ,rules of construction ,nothing in this ,act shall be construed to-- 7#a7 authorize the ,federal ,government to seize1 confiscate1 or otherwise impair any property right in the lawfully acquired ,bitcoin holdings of any person2 or 7#b7 infringe upon the rights of individuals1 businesses1 or organizations to purchase1 hold1 transfer1 or dispose of ,bitcoin in accordance with the law4 7b7 ,affirmation of rights ,this ,act affirms and protects the rights of persons to maintain full lawful control over the ,bitcoin and other digital assets of those individuals1 recognizing that the ability to maintain self-custody of private keys is fundamental to the principles of financial sovereignty1 privacy1 and personal liberty in the digital age4