A revised strategic bitcoin reserve bill has surfaced in Congress, significantly scaling back its ambitions while introducing strict custody controls. The legislation drops the original 1 million BTC purchase target, representing a major retreat from earlier proposals that would have had the U.S. government accumulate roughly 4.8% of Bitcoin's current supply.
The new framework institutes a 20-year lockup period on any acquired bitcoin. This prevents the government from liquidating holdings for two decades, effectively cementing a long-term Treasury asset strategy. The restriction addresses concerns from bitcoin advocates who worry about government sell-offs disrupting market stability or reversing policy under future administrations.
Transparency requirements anchor the revised bill. It mandates quarterly public proof-of-reserve disclosures paired with third-party audits of government bitcoin holdings. These provisions establish accountability mechanisms absent from earlier drafts, signaling legislative concern over how federal agencies would custody and report on digital assets. The audit requirement introduces external verification critical for institutional adoption of crypto holdings at scale.
The retreat from the 1 million BTC target reflects political reality in a Congress divided on digital asset policy. Some lawmakers view strategic bitcoin accumulation as financial prudence given inflation concerns and long-term asset diversification. Others remain skeptical of government involvement in crypto markets. The scaled-back proposal attempts compromise between these factions.
The bill's timing matters. Bitcoin recently traded near $42,000 after retreating from its $73,000 November peak. A 1 million BTC purchase would have cost roughly $42 billion at current prices, making the original proposal substantially less expensive than when first drafted at higher valuations. Dropping the target sidesteps congressional debates over government spending priorities in a deficit-conscious climate.
If passed, the legislation would position the U.S. alongside El Salvador and other nations with official bitcoin reserves, though at a smaller scale. The 20-year lockup and quarterly audits transform the bill from simple accumulation into a managed strategic reserve framework matching long-term monetary policy objectives rather than short-term trading strategies.