HR2032-119

What This Bill Does

The BITCOIN Act makes Bitcoin a federal reserve asset. Treasury must create a geographically dispersed Strategic Bitcoin Reserve for cold storage of government Bitcoin private keys, with physical and digital security, Defense and Homeland Security consultation, accounting for forks and airdrops, and five-year holding limits for forked or airdropped assets unless Congress authorizes disposal. Treasury must also establish a Bitcoin Purchase Program to buy 200,000 Bitcoins per year for five years, totaling 1 million Bitcoins, while minimizing market disruption. Purchased and transferred Bitcoin must go into the reserve and generally be held for at least 20 years; two years before that period ends, Treasury must recommend whether to keep holding or gradually release some assets only to reduce national debt, with no more than 10 percent sold in any two-year period after the holding period. Treasury must publish annual purchase-program reports for 20 years, quarterly public proof-of-reserve reports with cryptographic attestations, and obtain third-party audits, while GAO oversees compliance. Federal agency Bitcoin, including U.S. Marshals Service holdings after legal title, must be transferred to the reserve. States may voluntarily store Bitcoin in segregated reserve accounts while retaining title and assuming custody risks. The bill funds purchases by reducing a Federal Reserve surplus threshold, using the first $6 billion of annual Fed remittances in fiscal years 2025 through 2029 when available, and revaluing gold certificates, with excess proceeds reducing public debt. It also protects private lawful Bitcoin holdings and self-custody and adds Bitcoin accounting to the Exchange Stabilization Fund.

Who Benefits and How

Bitcoin holders benefit if federal purchases and long holding requirements increase official demand and reserve legitimacy. Treasury reserve managers benefit from statutory authority to custody, audit, and manage Bitcoin as a reserve asset. State governments holding Bitcoin benefit from optional segregated federal custody while retaining title and withdrawal rights. Digital asset custody auditors benefit from required proof-of-reserve verification and cryptographic attestation work. Private Bitcoin owners benefit from statutory language protecting lawful holdings and self-custody from federal seizure or impairment under the Act.

Who Bears the Burden and How

The Treasury Department must build secure reserve facilities, conduct purchases, manage forks and airdrops, publish reports, select auditors, and coordinate with other agencies. Federal Reserve banks must tender old gold certificates and may have remittances redirected toward Bitcoin purchases before deferred-asset repayment. Federal agencies holding Bitcoin must stop selling or encumbering it and transfer legal-title holdings to the Strategic Bitcoin Reserve. Federal taxpayers bear market, custody, operational, and opportunity-cost risk from acquiring and holding a volatile digital asset. GAO must conduct regular oversight of reserve reports and audits.

Key Provisions

• Creates a geographically dispersed Strategic Bitcoin Reserve for cold storage of government Bitcoin.
• Requires Treasury to buy 200,000 Bitcoins per year for five years, totaling 1 million Bitcoins.
• Requires a minimum 20-year holding period for reserve Bitcoin and limits later sales to debt reduction.
• Requires quarterly public proof-of-reserve attestations, third-party audits, and GAO oversight.
• Transfers federal agency Bitcoin to the reserve and permits voluntary state segregated accounts.
• Redirects specified Federal Reserve remittances and gold-certificate revaluation proceeds to fund purchases.