House Panel Advances Bill to Create 20-Year U.S. Bitcoin Reserve

A House panel voted to advance legislation that would establish a U.S. bitcoin reserve and require that any bitcoin held in the reserve remain in custody for 20 years. The panel approved the measure by voice vote and sent it to the full committee for further consideration.

The bill directs a designated federal agency to create and maintain the reserve, sets custody rules and requires regular reporting to Congress on holdings, valuations and security practices. Bitcoins acquired for the reserve could not be sold or otherwise disposed of for two decades, according to the bill text.

Supporters told the panel the reserve would create a long-term federal position in bitcoin and set a formal framework for how the government holds and manages the asset. The proposal includes standards for security, auditing, transparency and conditions for using third-party custodians.

Opponents raised concerns about bitcoin’s price volatility, potential taxpayer exposure and the technical challenges of long-term custody of private keys. Lawmakers questioned how the reserve would be funded, whether purchases could disrupt markets and what contingency plans would exist if private keys were lost or compromised.

The bill assigns custody and oversight responsibility to a named federal agency and requires periodic congressional briefings on the reserve’s operations. It includes provisions aimed at protecting the reserve from cyber theft, outlines recordkeeping and audit requirements, and sets standards for third-party custodial arrangements.

If the full committee approves the bill and the House passes it, the designated agency would need to build operational capabilities for acquiring bitcoin, secure private keys or contract custodians, and implement reporting, insurance and contingency procedures. Legal and technical advisers would be expected to draft custody, insurance and contingency protocols before implementation.

The legislation comes amid increased congressional focus on digital assets, including hearings on market regulation, consumer protections and stablecoins. The proposal differs from other legislative approaches that concentrate on licensing, disclosure or supervisory authority for crypto firms by creating a direct, long-term government stake in bitcoin.

Bitcoin is a decentralized digital asset created in 2009 and traded on open markets worldwide. Its price has shown sharp rises and declines, and custody of private keys is a known security challenge. The bill’s 20-year custody requirement would prevent short-term liquidation of government-held bitcoin and requires the agency to maintain records and audits that allow congressional oversight of acquisition methods, storage practices and valuation procedures.