Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025 or the BITCOIN Act of 2025
This bill provides for the acquisition and storage of the cryptocurrency Bitcoin by the U.S. government.
The Department of the Treasury must purchase one million Bitcoins over a five-year period and hold the Bitcoins in trust for the United States. The bill also allows for additional acquisitions through specified transfers, forfeitures, and gifts. All Bitcoins acquired by the United States and placed into the Strategic Bitcoin Reserve must be held for at least 20 years. At the end of this period and upon the recommendation of Treasury, a percentage of the holdings may be sold to reduce the national debt. The bill also establishes exceptions to this holding period for specified Bitcoin asset distributions and splits.
The bill directs Treasury to establish a Strategic Bitcoin Reserve for the secure storage of U.S. Bitcoins. The reserve must be a decentralized network of secure facilities across the United States. Existing U.S. Bitcoin holdings must be transferred to the reserve. States may voluntarily store Bitcoin holdings in the reserve in segregated accounts.
The bill also reduces the total amount of U.S. dollars Federal Reserve banks may hold in surplus and requires Federal Reserve banks to remit a certain amount of net earnings annually to the purchase of Bitcoins.
The bill also allows the use of Treasury’s Exchange Stabilization Fund to carry out purchases made under this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2032 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2032
To establish a Strategic Bitcoin Reserve and other programs to ensure
the transparent management of Bitcoin holdings of the Federal
Government, to offset costs utilizing certain resources of the Federal
Reserve System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 11, 2025
Mr. Begich (for himself, Mr. McDowell, Mr. Harrigan, Mr. Rulli, Mr.
Nehls, Mr. Taylor, and Mr. Collins) introduced the following bill;
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
Government, to offset costs utilizing certain resources of the Federal
Reserve System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Boosting Innovation, Technology, and
Competitiveness through Optimized Investment Nationwide Act of 2025''
or the ``BITCOIN Act of 2025''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The global financial landscape is rapidly evolving,
with digital assets playing an increasingly significant role in
the world economy.
(2) Bitcoin has demonstrated resilience, widespread
adoption, and served as a medium of exchange and a store of
value for more than a decade.
(3) Just as gold reserves have historically served as a
cornerstone of national financial security, Bitcoin represents
a digital-age asset capable of enhancing the financial
leadership and security of the United States in the 21st
century global economy.
(4) The acquisition and long-term storage of substantial
quantities of Bitcoin by the United States can strengthen the
financial condition of the United States, providing a hedge
against economic uncertainty and monetary instability.
(5) Bitcoin, as a decentralized and finitely scarce digital
asset, offers unique properties that complement existing
national reserves, strengthening the position of the United
States dollar in the global financial system.
(6) 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
innovation.
SEC. 3. DEFINITIONS.
In this Act:
(1) Airdrop.--The term ``airdrop'' means a gratuitous
distribution of digital assets to holders of Bitcoin in a
broad, equitable, and non-discretionary manner.
(2) Bitcoin purchase program.--The term ``Bitcoin Purchase
Program'' means the program established under section 5(a).
(3) Cold storage.--The term ``cold storage'' means a method
of storing private keys required to transact in Bitcoin, with a
nexus to a secure physical location, protected from
unauthorized access and isolated from any network connections.
(4) Fork.--The term ``fork'' means a change to the
consensus mechanism of a distributed ledger that creates a
separate ledger, resulting in a new digital asset that shares a
common transaction history with Bitcoin up to the point of the
change.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) Strategic bitcoin reserve.--The term ``Strategic
Bitcoin Reserve'' means the decentralized network of secure
Bitcoin storage facilities established pursuant to section
4(a).
SEC. 4. ESTABLISHMENT OF STRATEGIC BITCOIN RESERVE.
(a) Establishment.--The Secretary shall establish a decentralized
network of secure Bitcoin storage facilities distributed across the
United States, collectively to be known as the Strategic Bitcoin
Reserve for the cold storage of Government Bitcoin holdings.
(b) Purpose.--The Strategic Bitcoin Reserve shall be used for the
generation, safekeeping, and management of Bitcoin private keys
associated with Government Bitcoin holdings.
(c) Oversight.--The Secretary shall be responsible for the ongoing
monitoring and auditing of the holdings of the Strategic Bitcoin
Reserve.
(d) Decentralization.--
(1) In general.--The Secretary shall ensure that the
facilities of the Strategic Bitcoin Reserve are geographically
dispersed throughout the United States, to minimize the risk of
simultaneous compromise and to enhance the resilience of the
Strategic Bitcoin Reserve.
(2) Location selection.--The Secretary shall select the
locations for the facilities described in paragraph (1) based
on a comprehensive risk assessment, prioritizing geographic
diversity, security, and accessibility.
(e) Security Measures.--
(1) In general.--The Secretary shall implement state-of-
the-art physical and digital security measures to protect the
Strategic Bitcoin Reserve.
(2) Consultation.--The Secretary shall consult and
collaborate with the Secretary of Defense, the Secretary of
Homeland Security, and industry experts to ensure the highest
level of physical and digital security for the Strategic
Bitcoin Reserve.
(f) Retention of Forks and Airdrops.--
(1) In general.--The Secretary shall ensure that, with
respect to Bitcoins controlled by the Strategic Bitcoin
Reserve, 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 Reserve.
(2) 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 5-
year period beginning on the date of the fork or airdrop,
unless explicitly authorized by law.
(3) Evaluation and disposition after the holding period.--
(A) Market capitalization assessment.--Upon the
expiration of the 5-year holding period described in
paragraph (2), the Secretary shall conduct an
assessment to determine which digital asset resulting
from a fork has the highest publicly traded market
capitalization.
(B) Retention of dominant asset.--The Secretary
shall retain the digital asset with the highest
publicly traded market capitalization that resulted
from the fork.
(C) Disposition of non-dominant assets.--The
Secretary may sell, auction, or otherwise dispose of
any digital assets resulting from the fork other than
the asset identified in subparagraph (B), with the
proceeds from such disposition to be deposited in the
general fund of the Treasury.
(D) Exception for novel utility.--If the Secretary,
in consultation with the Secretary of Commerce and
industry experts, determines that a non-dominant forked
asset possesses novel technological utility or
strategic value to the United States distinct from the
dominant asset, the Secretary may recommend to Congress
the retention of such asset, notwithstanding
subparagraph (C).
SEC. 5. BITCOIN PURCHASE PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a Bitcoin
Purchase Program which shall--
(A) purchase 200,000 Bitcoins per year over a 5-
year period, for a total acquisition of 1,000,000
Bitcoins;
(B) conduct purchases in a transparent and
strategic manner to minimize market disruption; and
(C) hold Bitcoin acquired under this section in
trust for the United States, as provided in this
section.
(2) Flexibility relating to purchases.--The Secretary
shall, by rule, establish a procedure to adjust the purchase
schedule set forth under paragraph (1), if necessary, based on
prevailing market conditions.
(3) Transfer offset.--Any Bitcoin transferred to the
Strategic Bitcoin Reserve under section 7 may offset the
purchase requirements under paragraph (1).
(b) Deposit.--All Bitcoins purchased under the Bitcoin Purchase
Program shall be placed in the Strategic Bitcoin Reserve.
(c) Minimum Holding Period.--
(1) In general.--To ensure the long-term stability and
security of the Strategic Bitcoin Reserve, the Secretary shall
hold all Bitcoin acquired by the United States and deposited in
the Strategic Bitcoin Reserve, regardless of acquisition
method, for not less than 20 years from the date of
acquisition.
(2) Retention of bitcoin.--During the minimum holding
period under paragraph (1), no Bitcoin held in the Strategic
Bitcoin Reserve may be sold, swapped, auctioned, encumbered, or
otherwise disposed of for any purpose.
(3) Recommendations after holding period.--
(A) In general.--On the date that is 2 years before
the end of the minimum holding period under paragraph
(1), 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
debt.
(B) Recommendation.--Upon the expiration of the
minimum holding period, the Secretary shall not
recommend selling more than 10 percent of the assets of
the Strategic Bitcoin Reserve during any 2-year period.
(d) Public Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter for a period of 20
years, the Secretary shall publish an annual public report on the
status of the Bitcoin Purchase Program.
(e) Additional Bitcoin Acquisitions.--
(1) In general.--Notwithstanding the purchase limit
established in subsection (a)(1)(A), the United States may
acquire and hold Bitcoin in excess of 1,000,000 Bitcoins if
such Bitcoin is acquired through--
(A) transfers from Federal agencies pursuant to
section 7;
(B) civil or criminal forfeitures;
(C) gifts or bequests made to the United States; or
(D) any other lawful means other than direct
purchase under the Bitcoin Purchase Program.
(2) Treatment of additional holdings.--Any Bitcoin acquired
pursuant to paragraph (1) shall--
(A) be placed in the Strategic Bitcoin Reserve;
(B) be subject to the same security, auditing, and
reporting requirements as Bitcoin acquired through the
Bitcoin Purchase Program; and
(C) be subject to the minimum holding period
established in subsection (c)(1).
(3) Limitation.--Nothing in this subsection shall be
construed to authorize the Secretary to purchase Bitcoin in
excess of the limits established in subsection (a)(1)(A)
through the Bitcoin Purchase Program.
(f) 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 5302 of title 31, United States Code,
as amended by section 11 of this Act.
SEC. 6. PROOF OF RESERVE SYSTEM.
To ensure transparency and accountability in the management of the
Strategic Bitcoin Reserve, the Secretary shall establish an ongoing
Proof of Reserve system of public cryptographic attestation under
which--
(1) the Secretary shall--
(A) publish quarterly reports on the Strategic
Bitcoin Reserve that include detailed information on
the total holdings, transactions, and demonstrated
control of private keys relating to the Strategic
Bitcoin Reserve, including a public cryptographic
attestation;
(B) make the quarterly reports available to the
public on an official website of the Department of
Treasury; and
(C) select an independent, third-party auditor with
expertise in cryptographic attestations to verify the
accuracy and integrity of the quarterly reports; and
(2) the Comptroller General of the United States shall, to
ensure compliance with this Act, conduct regular oversight of--
(A) the Strategic Bitcoin Reserve;
(B) the quarterly reports under paragraph (1)(A);
and
(C) the audits under paragraph (1)(C).
SEC. 7. CONSOLIDATION OF GOVERNMENT BITCOIN HOLDINGS.
Beginning on the date of enactment of this Act, any Bitcoin under
the control of any Federal agency, including the United States Marshal
Service, shall--
(1) not be sold, swapped, auctioned, or otherwise
encumbered; and
(2) upon the acquisition of legal title to such Bitcoin
(including after a final, unappealable judgment is entered in a
criminal or civil forfeiture action in favor of the Federal
agency), be transferred by the head of such Federal agency to
the Strategic Bitcoin Reserve.
SEC. 8. VOLUNTARY STATE PARTICIPATION AND SEGREGATED ACCOUNTS.
(a) 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 account.
(b) Participation Requirements.--A State choosing to participate in
the program established under subsection (a) shall sign a contractual
agreement outlining the terms and conditions of participation, which
shall include--
(1) 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 State;
(2) a requirement that the State, in coordination with the
Secretary, develop and implement appropriate security protocols
and access controls to ensure the integrity and confidentiality
of the segregated account of the State; and
(3) retention of title, and all attendant legal interests,
by the State in the Bitcoin held in the segregated account,
including title to any digital asset that is the result of a
fork or airdrop relating to such Bitcoin.
(c) Withdraw or Transfer.--Each State participating in the program
established under subsection (a) shall have the right to withdraw or
transfer the contents of the segregated account of the State within the
Strategic Bitcoin Reserve, subject to the terms and conditions in the
signed contractual agreement under subsection (b) and any applicable
Federal regulations.
(d) Limitation of Liability.--
(1) In general.--Notwithstanding any other provision of
law, the Federal Government shall not be liable for any loss,
theft, destruction, or inaccessibility of Bitcoin or other
digital assets held in the Strategic Bitcoin Reserve, except in
cases of gross negligence or willful misconduct by the
Secretary or officials responsible for the management of the
Strategic Bitcoin Reserve.
(2) Acknowledgment of risk.--Any agreement entered into
under subsection (b) shall include an explicit acknowledgment
by the State that digital asset custody carries inherent risks
that cannot be eliminated completely, and that the State
assumes all risks associated with the voluntary placement of
its digital assets in the Strategic Bitcoin Reserve.
SEC. 9. OFFSETTING THE COST OF THE STRATEGIC BITCOIN RESERVE.
(a) Discretionary Surplus Funds of Federal Reserve Banks.--Section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is
amended by striking ``$6,825,000,000''and inserting ``$2,400,000,000''.
(b) Use of Remittances to Treasury.--
(1) In general.--Notwithstanding the second subsection (b)
of section 7 of the Federal Reserve Act (12 U.S.C. 290), for
fiscal years 2025 through 2029, if the Federal reserve banks
remit net earnings to the general fund of the Treasury during
that period, the first $6,000,000,000 of these remittances
(before repayment of any deferred asset) in a fiscal year shall
be utilized by the Secretary for the implementation of the
Bitcoin Purchase Program, pursuant to the purposes set forth
under section 5.
(2) Exception.--Paragraph (1) shall not apply if the
Federal Reserve banks do not remit net earnings in any given
fiscal year during the period of fiscal years 2025 through
2029.
(c) Federal Reserve System Gold Certificates.--Not later than 180
days after the date of enactment of this Act, the Federal reserve banks
shall tender all outstanding gold certificates in their custody to the
Secretary. Not later than 90 days after the tender of the last such
certificate, 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 Treasury, as of the date
specified by the Secretary on each new gold certificate. Upon issue by
the Secretary, 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 90 days.
(d) Use of Gold Certificate Remittances.--
(1) In general.--Funds remitted to the Secretary under
subsection (c) shall be allocated as follows:
(A) An amount necessary to fund the Bitcoin
Purchase Program, as established in section 5, shall be
reserved for that purpose, up to the full amount
required to purchase 1,000,000 Bitcoins under the
program.
(B) 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 debt.
(2) Priority use.--Funds allocated under paragraph (1)(A)
shall be used for Bitcoin purchases under the Bitcoin Purchase
Program before utilizing the remittances described in
subsection (b) for such purchases.
(3) Annual report.--The Secretary shall include in the
annual report required under section 5(d) an accounting of all
funds received under subsection (c) and their allocation
pursuant to this subsection.
(e) Conforming Amendment.--Section 5117(b) of title 31, United
States Code, is amended by striking ``(for the purpose of issuing those
certificates, of 42 and two-ninths dollars a fine troy ounce)''.
SEC. 10. PROTECTION OF PRIVATE PROPERTY RIGHTS.
(a) Rules of Construction.--Nothing in this Act shall be construed
to--
(1) authorize the Federal Government to seize, confiscate,
or otherwise impair any property right in the lawfully acquired
Bitcoin holdings of any person; or
(2) infringe upon the rights of individuals, businesses, or
organizations to purchase, hold, transfer, or dispose of
Bitcoin in accordance with the law.
(b) 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 individuals, recognizing that the ability
to maintain self-custody of private keys is fundamental to the
principles of financial sovereignty, privacy, and personal liberty in
the digital age.
SEC. 11. MODIFICATION OF EXCHANGE STABILIZATION FUND.
(a) In General.--Section 5302 of title 31, United States Code, is
amended--
(1) in subsection (a)(1), by inserting after ``section 3 of
the Special Drawing Rights Act (22 U.S.C. 286o),'' the
following: ``section 5 of the BITCOIN Act of 2025,''; and
(2) in subsection (b), in the first sentence, by striking
``gold, foreign exchange, and other instruments of credit and
securities'' and inserting ``gold, Bitcoin, foreign exchange,
and other instruments of credit and securities''.
(b) Transparency and Accountability.--Section 5302(c) of title 31,
United States Code, is amended--
(1) in paragraph (1), by inserting after ``all projected
liabilities'' the following: ``, including a detailed
accounting of any Bitcoin transactions and holdings''; and
(2) in paragraph (2), by inserting after ``on the operation
of the fund'' the following: ``, including a specific
accounting of any Bitcoin purchased, sold, or held by the fund
during the preceding year''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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