,,ii #aaith ,,congress #ast ,session ,s4 #ied ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #aa 7legislative day1 ,march #aj71 #bjbe,ms4 ,lummis 7for herself1 ,mr4 ,justice1 ,mr4 ,tuberville1 ,mr4 ,moreno1 ,mr4 ,marshall1 and ,mrs4 ,blackburn7 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 #bjbe or the ,,bitcoin ,act of #bjbe4 #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 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 #e4 ,bitcoin ,purchase ,program 7a7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a ,bitcoin ,purchase ,program which shall-- 7,a7 purchase #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 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 acquisition4 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 purpose4 7#c7 ,recommendations after holding period 7,a7 ,in general ,on the date that is #b years 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 ,reserve for the sole purpose of reducing the national debt4 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 7e7 ,additional ,bitcoin acquisitions 7#a7 ,in general ,notwithstanding the purchase limit established in subsection 7a77#a77;,a71 the ,united ,states may acquire and hold ,bitcoin in excess of #a1jjj1jjj ,bitcoins if such ,bitcoin is acquired through-- 7,a7 transfers from ,federal agencies pursuant to section #g2 7,b7 civil or criminal forfeitures2 7,c7 gifts or bequests made to the ,united ,states2 or 7,d7 any other lawful means other than direct purchase under subsection 7a77#a74 7#b7 ,treatment of additional holdings ,any ,bitcoin acquired pursuant to paragraph 7#a7 shall-- 7,a7 be placed in the ,strategic ,bitcoin ,reserve2 7,b7 be subject to the same security1 auditing1 and reporting requirements as ,bitcoin acquired through the ,bitcoin ,purchase ,program2 and 7,c7 be subject to the minimum holding period established in subsection 7c77#a74 7#c7 ,limitation ,nothing in this subsection shall be construed to authorize the ,secretary to purchase ,bitcoin in excess of the limits established in subsection 7a77#a77;,a7 through the ,bitcoin ,purchase ,program4 7f7 ,coordination with ,exchange ,stabilization ,fund ,the ,secretary shall coordinate ,bitcoin purchases made through the ,bitcoin ,purchase ,program with any ,bitcoin purchases made through the ,exchange ,stabilization ,fund under section #ecjb of title #ca1 ,united ,states ,code1 as amended by section #aa of this ,act4 #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 ,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 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 ,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 ,use of gold certificate remittances 7#a7 ,in general ,funds remitted to the ,secretary under subsection 7c7 shall be allocated as follows3 7,a7 ,an amount necessary to fund the ,bitcoin ,purchase ,program1 as established in section #e1 shall be reserved for that purpose1 up to the full amount required to purchase #a1jjj1jjj ,bitcoins under the program4 7,b7 ,any funds in excess of the amount necessary to fully fund the ,bitcoin ,purchase ,program shall be deposited in the general fund of the ,treasury to reduce the public debt4 7#b7 ,priority use ,funds allocated under paragraph 7#a77;,a7 shall be used for ,bitcoin purchases under the ,bitcoin ,purchase ,program before utilizing the remittances described in subsection 7b7 for such purchases4 7#c7 ,annual report ,the ,secretary shall include in the annual report required under section #e7;d7 an accounting of all funds received under subsection 7c7 and their allocation pursuant to this subsection4 7e7 ,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 #aa4 ,modification of ,exchange ,stabilization fund 7a7 ,in general ,section #ecjb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#a71 by inserting section #e of the ,,bitcoin ,act of #bjbe1 after section #c of the ,special ,drawing ,rights ,act 7#bb ,u4,s4,c4 #bhfo712 and 7#b7 in subsection 7b71 in the first sentence1 by striking gold1 foreign exchange1 and other instruments of credit and securities and inserting gold1 ,bitcoin1 foreign exchange1 and other instruments of credit and securities4 7b7 ,transparency and accountability ,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 purchased1 sold1 or held by the fund during the year preceding the report after on the operation of the fund4