,i #aaith ,,congress #b;d ,session ,h4 ,r4 #hieg ,,in ,,the ,,house ,,of ,,representatives ,may #ba1 #bjbf,mr4 ,begich 7for himself1 ,mr4 ,golden of ,maine1 ,mr4 ,van ,epps1 ,mr4 ,owens1 ,mr4 ,carey1 ,mr4 ,carter of ,georgia1 ,mr4 ,moore of ,alabama1 ,mr4 ,harrigan1 ,mr4 ,rulli1 ,mrs4 ,miller-,meeks1 ,mr4 ,hamadeh of ,arizona1 ,mr4 ,lawler1 ,mr4 ,haridopolos1 ,mr4 ,collins1 ,mr4 ,taylor1 ,mr4 ,moore of ,west ,virginia1 ,mr4 ,moore of ,north ,carolina1 ,mr4 ,evans of ,colorado1 ,mr4 ,cline1 ,mr4 ,mc,dowell1 ,mr4 ,ogles1 and ,mr4 ,fong7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,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 ,american ,reserve ,modernization ,act of #bjbf4 #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 ,bitcoin1 as a decentralized and finitely scarce digital asset1 offers unique properties that could complement existing national reserves1 potentially strengthening the position of the ,united ,states dollar in the global financial system4 7#e7 ,diversification of the national assets of the ,united ,states to include ,bitcoin could 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 distribution of digital assets to holders of ,bitcoin in a broad1 equitable1 and non-discretionary manner4 7#b7 ,digital asset ,the term digital asset means any digital representation of value that is recorded on a cryptographically secured distributed ledger4 7#c7 ,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 divergence4 7#d7 ,qualifying bitcoin ,the term qualifying ,bitcoin means ,bitcoin that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any executive department or agency and that is not needed to satisfy requirements under section #igje of title #ca1 ,united ,states ,code4 7#e7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 #d4 ,establishment of ,strategic ,bitcoin ,reserve and ,digital ,asset ,stockpile 7a7 ,establishment 7#a7 ,strategic ,bitcoin ,reserve ,the ,secretary shall1 not later than #ahj days after the date of enactment of this ,act1 establish a secure ,bitcoin storage facility within the ,department of ,treasury for the ,united ,states1 to be known as the ,strategic ,bitcoin ,reserve1 for the safekeeping of qualifying ,bitcoin holdings4 7#b7 ,digital asset stockpile ,the ,secretary shall1 not later than #ahj days after the date of enactment of this ,act1 establish and administer a separate structure within the ,department of the ,treasury1 to be known as the ,digital ,asset ,stockpile1 for the custody1 management1 and disposition of non-,bitcoin digital assets held by the ,federal ,government4 7b7 ,oversight ,the ,secretary shall be responsible for the ongoing monitoring and auditing of the holdings of the ,strategic ,bitcoin ,reserve and the ,digital ,asset ,stockpile4 7c7 ,security measures 7#a7 ,in general ,the ,secretary shall implement physical security and cybersecurity measures1 using commercially reasonable and technologically appropriate standards1 to protect the qualifying ,bitcoin and non-,bitcoin digital assets in ,strategic ,bitcoin ,reserve and the ,digital ,asset ,stockpile4 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 security and cybersecurity for the ,strategic ,bitcoin ,reserve and the ,digital ,asset ,stockpile4 7d7 ,management of assets 7#a7 ,all qualifying ,bitcoin acquired by the ,federal ,government shall be deposited in the ,strategic ,bitcoin ,reserve4 7#b7 ,all other digital assets acquired by the ,federal ,government shall be deposited in the ,digital ,asset ,stockpile4 7#c7 ,the ,secretary shall have discretion to manage the ,digital ,asset ,stockpile1 including through sale1 exchange1 or conversion of non-,bitcoin assets1 provided that-- 7,a7 proceeds from such disposition shall be used exclusively to increase the holdings of the ,strategic ,bitcoin ,reserve1 or otherwise reduce the national debt2 and 7,b7 all transactions shall be conducted in a transparent and accountable manner consistent with ,section #f 7,proof of ,reserve ,system74 7e7 ,retention of forks and airdrops 7#a7 ,in general ,the ,secretary shall ensure that1 with respect to assets controlled by the ,strategic ,bitcoin ,reserve and the ,digital ,asset ,stockpile1 all digital assets resulting from forks or airdrops to blockchain addresses under the ,government's control are accounted for and reasonably stored in the ,strategic ,bitcoin ,reserve or ,digital ,asset ,stockpile1 as applicable4 7#b7 ,prohibition on immediate sale ,no digital asset stored in the ,strategic ,bitcoin ,reserve or ,digital ,asset ,stockpile 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 7#c7 ,evaluation and disposition after the holding period 7,a7 ,market capitalization assessment ,upon the expiration of the #e-year holding period described in paragraph 7#b71 the ,secretary shall conduct an assessment to determine which digital asset resulting from a fork has the highest publicly traded market capitalization4 7,b7 ,retention of dominant asset ,the ,secretary shall retain the digital asset with the highest publicly traded market capitalization that resulted from the fork4 7,c7 ,disposition of non-dominant assets ,the ,secretary may sell1 auction1 or otherwise dispose of any digital assets resulting from the fork other than the asset identified pursuant to subparagraph 7,b71 with the proceeds from such disposition to be deposited in the general fund of the ,treasury4 7,d7 ,exception for novel utility ,if the ,secretary1 in consultation with the ,secretary of ,commerce and industry experts1 determines that a non-dominant forked asset possesses novel technological utility or strategic value to the ,united ,states distinct from the dominant asset1 the ,secretary may recommend to ,congress the retention of such asset1 notwithstanding subparagraph 7,c74 7f7 ,regulatory authority 7#a7 ,in general ,to ensure the effective implementation and administration of this ,act1 the ,secretary is authorized to issue regulations1 promulgate rules1 and adopt internal procedures consistent with the purposes and provisions of this ,act4 ,such regulations may include1 but are not limited to1 rules governing custody protocols1 interagency coordination1 digital asset accounting standards1 and public reporting requirements4 7#b7 ,sales of qualifying bitcoin 7,a7 ,in general ,if the ,secretary makes a determination under subsection 7a7 or subsection 7b7 that it is in the interest of the ,united ,states to sell qualifying ,bitcoin held in the ,reserve1 the ,secretary may only sell such qualifying ,bitcoin if-- 7i7 the ,secretary issues a rule that establishes a process through which the ,united ,states shall sell such qualifying ,bitcoin2 and 7ii7 the ,secretary sells the qualifying ,bitcoin in accordance with such rule4 7,b7 ,priorities ,the ,secretary shall prioritize transparency and the minimization of market disruption when establishing any process through which the ,united ,states will sell qualifying ,bitcoin held in the ,reserve4 7,c7 ,required disclosures ,any process established by rule under subparagraph 7,a7 through which the ,united ,states shall sell qualifying ,bitcoin held in the ,reserve shall include a public disclosure of-- 7i7 the sale schedule for such qualifying ,bitcoin2 7ii7 the quantity of qualifying ,bitcoin to be sold2 and 7iii7 any additional information the ,secretary determines appropriate to publicly disclose4 #e4 ,reserve asset holding requirements 7a7 ,minimum holding period ,to ensure the long-term stability and security of the ,strategic ,bitcoin ,reserve1 the ,secretary shall hold all ,bitcoin acquired by the ,united ,states and deposited in the ,strategic ,bitcoin ,reserve1 regardless of acquisition method1 for not less than #bj years from the date of enactment of this act2 after the date of enactment of this ,act1 the ,secretary shall hold all ,bitcoin acquired by the ,united ,states and deposited in the ,strategic ,bitcoin ,reserve1 regardless of acquisition method1 for not less than #bj years from the date of deposit in the ,strategic ,bitcoin ,reserve4 7b7 ,retention of bitcoin ,during the minimum holding period under subsection 7a71 no ,bitcoin held in the ,strategic ,bitcoin ,reserve may be sold1 swapped1 auctioned1 encumbered1 or otherwise disposed of for any purpose4 7c7 ,recommendations after holding period 7#a7 ,in general ,on the date that is #b years before the end of the minimum holding period under subsection 7a71 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 may recommend selling up to #aj percent of the assets of the ,strategic ,bitcoin ,reserve during any #b-year period4 7#c7 ,considerations ,when making the recommendation under paragraph 7#b71 the ,secretary shall consider-- 7,a7 the potential impact on the national deficit of selling qualifying ,bitcoin held in the ,reserve2 7,b7 the long-term viability of ,bitcoin as a strategic investment of the ,united ,states2 7,c7 the potential effects on the ,bitcoin market and other digital asset markets of selling qualifying ,bitcoin held in the ,reserve2 7,d7 how the level of diversification of the assets held by the ,united ,states could be impacted by selling qualifying ,bitcoin held in the ,reserve2 and 7,e7 how the financial position and resilience of the ,united ,states could be impacted by selling qualifying ,bitcoin held in the ,reserve4 7d7 ,study ,to sell before minimum holding period ,not later than #a year after the date of the enactment of this ,act1 the ,secretary shall submit to the ,congress a study which describes-- 7#a7 appropriate conditions in which to sell qualifying ,bitcoin before the minimum holding period described in subsection 7a72 and 7#b7 any exceptions that the ,secretary finds appropriate to the minimum holding period described in subsection 7a71 including for national security and financial stability purposes4 #f4 ,proof of reserve system ,to ensure transparency and accountability in the management of the ,strategic ,bitcoin ,reserve1 the ,secretary shall establish an ongoing ,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 and digital asset holdings 7a7 ,temporary custody and inventory 7#a7 ,within #fj days after the date of enactment of this ,act1 the head of each ,federal agency shall provide to the ,secretary a complete accounting of all ,bitcoin and any other digital assets held1 seized1 or otherwise under the control of such agency4 7#b7 ,until the ,strategic ,bitcoin ,reserve and ,digital ,asset ,stockpile have been fully established and certified operational pursuant to section #d7;a71 each ,federal agency shall retain custody of its ,bitcoin holdings in accordance with existing law1 including any physical or cybersecurity protections1 subject to the prohibition in subsection 7b74 7b7 ,prohibition on sale or encumbrance ,no ,bitcoin under the control of any ,federal agency may be sold1 swapped1 auctioned1 encumbered1 or otherwise disposed of during the interim period preceding the operational certification of the ,strategic ,bitcoin ,reserve1 except-- 7#a7 for purposes of national security2 or 7#b7 as required by a court of competent jurisdiction or to return assets to identifiable victims of crime4 7c7 ,transfer to ,strategic ,bitcoin ,reserve or ,digital ,asset ,stockpile 7#a7 ,upon certification by the ,secretary that the ,strategic ,bitcoin ,reserve and ,digital ,asset ,stockpile is fully operational and capable of secure custody1 all ,bitcoin and other digital asset holdings of any ,federal agency shall be transferred to the ,strategic ,bitcoin ,reserve or ,digital ,asset ,stockpile1 as applicable1 within #cj days4 7#b7 ,transfers under this subsection shall be executed under secure custody procedures established by the ,secretary to ensure the integrity1 traceability1 and full auditability of all ,bitcoin and other digital assets transferred4 #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 7d7 ,limitation of liability ,any agreement entered into under subsection 7b7 shall include an explicit acknowledgment by the ,state that digital asset custody carries inherent risks that cannot be eliminated completely1 and that the ,state assumes all risks associated with the voluntary placement of its digital assets in the ,strategic ,bitcoin ,reserve4 #i4 ,study on budget neutral strategies for bitcoin acquisition 7a7 ,study ,the ,secretary of the ,treasury and the ,secretary of ,commerce shall jointly study1 within #ahj days after the date of enactment of this ,act1 the risks1 costs1 and potential benefits of the acquisition of additional bitcoin over the next #e years1 to be held within the ,strategic ,bitcoin ,reserve1 and whether it is possible for such acquisition to be performed in a budget neutral manner that does not1 in practice1 increase the national debt nominally or economically4 7b7 ,objectives ,the study under subsection 7a7 shall-- 7#a7 evaluate whether there are lawful1 budget-neutral mechanisms1 by which the ,united ,states may acquire ,bitcoin2 7#b7 identify and evaluate the full cost of acquisitions1 nominally and economically1 of bitcoins through mechanisms including-- 7,a7 conversion of non-,bitcoin digital assets held in the ,digital ,asset ,stockpile2 7,b7 structured acquisition funded by discretionary surplus remittances from ,federal ,reserve ,banks or revaluation of gold certificates held by the ,federal ,reserve ,banks2 7,c7 receipt of ,bitcoin through civil or criminal forfeiture proceedings1 penalties1 or settlements2 7,d7 tax payments1 tariff revenues1 voluntary contributions1 bequests1 or gifts made to the ,united ,states2 or 7,e7 cooperative programs with ,states1 private entities1 or international partners for ,bitcoin acquisition or custody2 and 7#c7 identify whether any such acquisitions could be budget-neutral1 meaning they do not require new appropriations or impose net costs on ,united ,states taxpayers or the ,federal ,government and its agencies or increase the national debt nominally or economically4 7c7 ,reporting and transparency ,the ,secretary of the ,treasury and the ,secretary of ,commerce shall submit to the ,committees on ,banking1 ,housing1 and ,urban ,affairs and ,finance of the ,senate and the ,committees on ,financial ,services and ,ways and ,means of the ,house of ,representatives-- 7#a7 an initial study within #ahj days after enactment2 and 7#b7 annual updates thereafter detailing new findings4 ,each annual report shall include a detailed accounting of projected bitcoin acquisitions' full costs and benefits to ,united ,states taxpayers and the ,federal ,government and its agencies and to the national debt nominally and economically4 7d7 ,limitation ,nothing in this section shall be construed to authorize any borrowing1 new taxation1 or deficit spending for the purpose of acquiring ,bitcoin4 #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 7#b7 infringe upon the rights of individuals1 businesses1 or organizations to purchase1 hold1 transfer1 or dispose of ,bitcoin in accordance with the law2 or 7#c7 otherwise affect the functions of the director of the ,office of the ,management and ,budget relating to budgetary1 administrative1 or legislative proposals4 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 #aa4 ,modification of exchange stabilization fund ,section #ecjb7;c7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a71 by inserting 1 including a detailed accounting of any ,bitcoin transactions and holdings after all projected liabilities2 and 7#b7 in paragraph 7#b71 by inserting 1 including a specific accounting of any ,bitcoin acquired1 sold1 or held by the fund during year preceding the report after on the operation of the fund4