Trump’s Bitcoin Reserve Plan Clears Major Hurdle as US House Panel Advances Bill

Summary

• House lawmakers advanced legislation supporting Trump’s Bitcoin reserve, moving the proposal closer to full congressional consideration and permanent legal status.
• The bill directs Treasury to secure government Bitcoin while allowing budget-neutral acquisitions and a separate stockpile for other digital assets.
• Supporters view Bitcoin as strategic financial strength, while opponents cite volatility before required House and Senate votes determine final passage.

President Donald Trump’s Bitcoin reserve plan cleared a major legislative hurdle as a US House panel advanced supporting legislation Wednesday. The House Financial Services Committee approved the American Reserve Modernization Act, moving the proposal closer to full House consideration.

According to the 19-page bill, the Treasury Department must establish and maintain a secure facility for storing government-controlled Bitcoin. The measure would convert key parts of Trump’s executive plan into federal law, protecting the reserve across future administrations. Representative Bryan Steil described the reserve as a financial strategy that could strengthen government assets while supporting deficit reduction efforts.

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Bill Builds Upon Trump’s Existing Bitcoin Reserve

Representative Nick Begich and Senator Cynthia Lummis introduced an earlier version of the legislation more than one year ago. That proposal carried the name Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, commonly called the BITCOIN Act.

Significantly, the legislation permits additional Bitcoin acquisitions over five years through budget-neutral strategies that impose no costs on taxpayers. Trump established the strategic Bitcoin reserve through an executive order during the opening months of his current presidency in 2025.

His framework relies primarily on Bitcoin seized through criminal or civil forfeiture proceedings rather than taxpayer-funded cryptocurrency purchases. Additionally, Trump instructed the Treasury and Commerce departments to develop budget-neutral approaches for expanding government Bitcoin holdings.

Congressional Approval Could Establish Permanent Rules

Questions later emerged regarding whether the Treasury possesses sufficient authority to manage a national Bitcoin reserve under existing federal law. The committee-approved bill addresses that uncertainty by assigning storage and administrative responsibilities directly to the Treasury Department.

Consequently, congressional approval could establish lasting rules for securing seized Bitcoin and limit sales made without strategic consideration. However, the proposal requires approval from the full House and Senate before Trump can sign it into federal law.

Democratic Representative Bill Foster opposed the measure, citing Bitcoin’s volatility and questioning its suitability as a government reserve investment. Nevertheless, the committee vote represents meaningful progress by moving Trump’s reserve plan deeper into the legislative process. Congress must now determine whether Bitcoin should formally become a permanent component of the United States’ broader national strategic reserves.

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