119-hr2032

[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''.
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