LIP24548 829

118TH CONGRESS
2D SESSION

S.L.C.

S. ll

To establish a Strategic Bitcoin Reserve and other programs to ensure thetransparent 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 SENATE OF THE UNITED STATES
llllllllll
Ms. LUMMIS introduced the following bill; which was read twice and referredto the Committee on llllllllll

A BILLTo 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, andfor other purposes.
1Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,
34SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Boosting Innovation,

5 Technology, and Competitiveness through Optimized In6 vestment Nationwide Act of 2024’’ or the ‘‘BITCOIN Act
7 of 2024’’.

LIP24548 829

S.L.C.

2
12SEC. 2. FINDINGS.

Congress finds the following:

3(1) The global financial landscape is rapidly

4evolving, with digital assets playing an increasingly

5

significant role in the world economy.

6(2) Bitcoin has demonstrated resilience, wide-7

spread adoption, and served as a medium of ex-

8change and a store of value for more than a decade.

9(3) Just as gold reserves have historically

10

served as a cornerstone of national financial secu-

11rity, Bitcoin represents a digital-age asset capable of

12enhancing the financial leadership and security of

13

the United States in the 21st century global econ-14omy.

15(4) The acquisition and long-term storage of16

substantial quantities of Bitcoin by the United

17

States can strengthen the financial condition of the18

United States, providing a hedge against economic

19

uncertainty and monetary instability.

20(5) Bitcoin, as a decentralized and finitely

21

scarce digital asset, offers unique properties that22complement existing national reserves, strengthening23

the position of the United States dollar in the global

24

financial system.

25(6) Diversification of the national assets of the26

United States to include Bitcoin can enhance finan-LIP24548 829

S.L.C.

3
1

cial resilience and position the United States at the2forefront of global financial innovation.

3SEC. 3. DEFINITIONS.

4In this Act:

5(1) AIRDROP.—The term ‘‘airdrop’’ means a

6gratuitous distribution of digital assets to holders of7

Bitcoin in a broad, equitable, and non-discretionary

8manner.

9(2) BITCOIN PURCHASE PROGRAM.—The term

10‘‘Bitcoin Purchase Program’’ means the program es-11

tablished under section 5(a).

12(3) COLD STORAGE.—The term ‘‘cold storage’’13

means a method of storing private keys required to14

transact in Bitcoin, with a nexus to a secure phys-

15

ical location, protected from unauthorized access and16

isolated from any network connections.

17(4) FORK.—The term ‘‘fork’’ means a change

18

to the consensus mechanism of a distributed ledger

19that creates a separate ledger, resulting in a new20

digital asset that shares a common transaction his-21

tory with Bitcoin up to the point of the change.

2223(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.

24(6) STRATEGIC BITCOIN RESERVE.—The term

25‘‘Strategic Bitcoin Reserve’’ means the decentralizedLIP24548 829

S.L.C.

4
1network of secure Bitcoin storage facilities estab-2lished pursuant to section 4(a).

3SEC. 4. ESTABLISHMENT OF STRATEGIC BITCOIN RESERVE.

4(a) ESTABLISHMENT.—The Secretary shall establish

5 a decentralized network of secure Bitcoin storage facilities
6 distributed across the United States, collectively to be
7 known as the Strategic Bitcoin Reserve for the cold stor8 age of Government Bitcoin holdings.
9(b) PURPOSE.—The Strategic Bitcoin Reserve shall

10 be used for the generation, safekeeping, and management
11 of Bitcoin private keys associated with Government
12 Bitcoin holdings.
13(c) OVERSIGHT.—The Secretary shall be responsible

14 for the ongoing monitoring and auditing of the holdings
15 of the Strategic Bitcoin Reserve.
16(d) DECENTRALIZATION.—

17(1) IN GENERAL.—The Secretary shall ensure

18

that the facilities of the Strategic Bitcoin Reserve19

are geographically dispersed throughout the United

20

States, to minimize the risk of simultaneous com-21

promise and to enhance the resilience of the Stra-

22

tegic Bitcoin Reserve.

23(2)LOCATIONSELECTION.—TheSecretary

24

shall select the locations for the facilities described

25in paragraph (1) based on a comprehensive risk as-LIP24548 829

S.L.C.

5
1sessment, prioritizing geographic diversity, security,

2and accessibility.

3(e) SECURITY MEASURES.—

4(1) IN GENERAL.—The Secretary shall imple-

5

ment state-of-the-art physical and digital security

6measures to protect the Strategic Bitcoin Reserve.

7(2) CONSULTATION.—The Secretary shall con-8sult and collaborate with the Secretary of Defense,9

the Secretary of Homeland Security, and industry

10experts to ensure the highest level of physical and11

digital security for the Strategic Bitcoin Reserve.

12(f) RETENTION OF FORKS AND AIRDROPS.—13(1) IN GENERAL.—The Secretary shall ensure

14

that, with respect to Bitcoins controlled by the Stra-

15

tegic Bitcoin Reserve, all digital assets resulting

16

from forks of the Bitcoin distributed ledger and dig-17

ital assets distributed via airdrops to Bitcoin ad-18

dresses are accounted for and reasonably stored in19

the Strategic Bitcoin Reserve.

20(2) PROHIBITIONON IMMEDIATE SALE.—No

21

digital asset stored in the Strategic Bitcoin Reserve

22that is the result of a fork or airdrop may be sold23

or otherwise disposed of during the 5-year period be-

24

ginning on the date of the fork or airdrop, unless ex-

25

plicitly authorized by law.

LIP24548 829

S.L.C.

6
1
2
34SEC. 5. BITCOIN PURCHASE PROGRAM.

(a) ESTABLISHMENT.—(1) IN GENERAL.—The Secretary shall establish
a Bitcoin Purchase Program which shall—

5(A) purchase not more than 200,000

6Bitcoins per year over a 5-year period, for a7

total acquisition of 1,000,000 Bitcoins;

8(B) conduct purchases in a transparent

9and strategic manner to minimize market dis-10ruption; and11(C) hold Bitcoin acquired under this sec-

12tion in trust for the United States, as provided

13in this section.

14(2) FLEXIBILITY RELATING TO PURCHASES.—

15The Secretary shall, by rule, establish a procedure to16

adjust the purchase schedule set forth under para-17graph (1), if necessary, based on prevailing market

18conditions.

19(3) TRANSFEROFFSET.—AnyBitcoin trans-

20

ferred to the Strategic Bitcoin Reserve under section

217 may offset the purchase requirements under para-22graph (1).

23(b) DEPOSIT.—All Bitcoins purchased under the24 Bitcoin Purchase Program shall be placed in the Strategic
25 Bitcoin Reserve.
26(c) MINIMUM HOLDING PERIOD.—

LIP24548 829

S.L.C.

71(1) IN GENERAL.—To ensure the long-term sta-2

bility and security of the Strategic Bitcoin Reserve,

3the Secretary shall hold all Bitcoin acquired through4the Bitcoin Purchase Program for not less than 205years.

6(2) RETENTION OF BITCOIN.—During the min-7imum holding period under paragraph (1), no8

Bitcoin held in the Strategic Bitcoin Reserve may be

9sold, swapped, auctioned, encumbered, or otherwise

10

disposed of for any purpose other than retiring out-

11

standing Federal debt instruments.

1213(3) RECOMMENDATIONS AFTER HOLDING PERIOD.—

14(A) IN GENERAL.—On the date that is 1

15year before the end of the minimum holding pe-

16

riod under paragraph (1), the Secretary shall17submit to Congress recommendations on wheth-18er to continue to voluntarily hold or to allow for19

the gradual and controlled release of a portion

20of the holdings of the Strategic Bitcoin Reserve.

21(B) RECOMMENDATION.—Upon the expira-22tion of the minimum holding period, the Sec-23

retary shall not recommend selling more than24

10 percent of the assets of the Strategic Bitcoin

25

Reserve during any 2-year period.

LIP24548 829

S.L.C.

81(d) PUBLIC REPORTS.—Not later than 1 year after

2 the date of enactment of this Act, and annually thereafter
3 for a period of 20 years, the Secretary shall publish an
4 annual public report on the status of the Bitcoin Purchase
5 Program.
67SEC. 6. PROOF OF RESERVE SYSTEM.

To ensure transparency and accountability in the8 management of the Strategic Bitcoin Reserve, the Sec9 retary shall establish a quarterly Proof of Reserve system
10 of public cryptographic attestation under which—11(1) the Secretary shall—

12(A) publish quarterly reports on the Stra-

13

tegic Bitcoin Reserve that include detailed in-14

formation on the total holdings, transactions,15and demonstrated control of private keys relat-

16

ing to the Strategic Bitcoin Reserve, including

17a public cryptographic attestation;

18(B) make the quarterly reports available to19

the public on an official website of the Depart-

20

ment of Treasury; and21(C) select an independent, third-party

22

auditor with expertise in cryptographic attesta-

23

tions to verify the accuracy and integrity of the24quarterly reports; andLIP24548 829

S.L.C.

91(2) the Comptroller General of the United

2States shall, to ensure compliance with this Act, con-3

duct regular oversight of—4(A) the Strategic Bitcoin Reserve;5(B) the quarterly reports under paragraph678910(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

11 Bitcoin under the control of any Federal agency, including
12 the United States Marshal Service, shall—1314(1) not be sold, swapped, auctioned, or otherwise encumbered; and15(2) upon the acquisition of legal title to such

16

Bitcoin (including after a final, unappealable judg-

17ment is entered in a criminal or civil forfeiture ac-

18tion in favor of the Federal agency), be transferred

19by the head of such Federal agency to the Strategic

20Bitcoin Reserve.

212223SEC. 8. VOLUNTARY STATE PARTICIPATION AND SEGREGATED ACCOUNTS.

(a) VOLUNTARY STATE PARTICIPATION.—The Sec-

24 retary shall establish a program that allows a State to vol25 untarily participate in storing the Bitcoin holdings of theLIP24548 829

S.L.C.

10
1 State in the Strategic Bitcoin Reserve in a segregated ac2 count.
3(b) PARTICIPATION REQUIREMENTS.—A State choos-4 ing to participate in the program established under sub5 section (a) shall sign a contractual agreement outlining
6 the terms and conditions of participation, which shall in7 clude—
8(1) the responsibilities of both the State and9

the Strategic Bitcoin Reserve in managing and se-

10

curing the Bitcoin holdings of the State in the seg-11

regated account of the State;12(2) a requirement that the State, in coordina-13tion with the Secretary, develop and implement ap-

14

propriate security protocols and access controls to15

ensure the integrity and confidentiality of the seg-16

regated account of the State; and17(3) retention of title, and all attendant legal in-

18terests, by the State in the Bitcoin held in the seg-19

regated account, including title to any digital asset

20

that is the result of a fork or airdrop relating to

21such Bitcoin.

22(c) WITHDRAW OR TRANSFER.—Each State partici-

23 pating in the program established under subsection (a)24 shall have the right to withdraw or transfer the contents
25 of the segregated account of the State within the Strategic

LIP24548 829

S.L.C.

111 Bitcoin Reserve, subject to the terms and conditions in
2 the signed contractual agreement under subsection (b) and3 any applicable Federal regulations.
456SEC.

9.

OFFSETTINGTHE

COSTOFTHE

STRATEGICBITCOIN RESERVE.

(a) DISCRETIONARY SURPLUS FUNDS OF FEDERAL

7 RESERVE BANKS.—Section 7(a)(3)(A) of the Federal Re8 serve Act (12 U.S.C. 289(a)(3)(A)) is amended by striking
9 ‘‘$6,825,000,000’’and inserting ‘‘$2,400,000,000’’.
10(b) USE OF REMITTANCES TO TREASURY.—

11(1) IN GENERAL.—Notwithstanding the second

12subsection (b) of section 7 of the Federal Reserve

13Act (12 U.S.C. 290), for fiscal years 2025 through142029, if the Federal reserve banks remit net earn-

15

ings to the general fund of the Treasury during that16

period, the first $6,000,000,000 of these remittances

17(before repayment of any deferred asset) in a fiscal

18

year shall be utilized by the Secretary for the imple-

19

mentation of the Bitcoin Purchase Program, pursu-

20

ant to the purposes set forth under section 5.

21(2) EXCEPTION.—Paragraph (1) shall not

22

apply if the Federal Reserve banks do not remit net

23earnings in any given fiscal year during the period

24of fiscal years 2025 through 2029.

LIP24548 829

S.L.C.

121(c) FEDERAL RESERVE SYSTEM GOLD CERTIFI-

2CATES.—Not later than 180 days after the date of enact-

3 ment of this Act, the Federal reserve banks shall tender
4 all outstanding gold certificates in their custody to the5 Secretary. Not later than 90 days after the tender of the6 last such certificate, the Secretary shall issue new gold
7 certificates to the Federal reserve banks that reflect the8 fair market value price of the gold held against such cer9 tificates by the Treasury, as of the date specified by the10 Secretary on each new gold certificate. Upon issue by the11 Secretary, each Federal reserve bank that receives a new
12 gold certificate shall remit the difference in cash value be13 tween the old and new gold certificates to the Secretary
14 for deposit in the general fund within 90 days.
15(d) CONFORMING AMENDMENT.—Section 5117(b) of16 title 31, United States Code, is amended by striking ‘‘(for17 the purpose of issuing those certificates, of 42 and two18 ninths dollars a fine troy ounce)’’.
1920SEC. 10. PROTECTION OF PRIVATE PROPERTY RIGHTS.

(a) RULES OF CONSTRUCTION.—Nothing in this Act

21 shall be construed to—22(1) authorize the Federal Government to seize,

23

confiscate, or otherwise impair any property right in24

the lawfully acquired Bitcoin holdings of any person;

25orLIP24548 829

S.L.C.

13
1(2) infringe upon the rights of individuals, busi-

2

nesses, or organizations to purchase, hold, transfer,

3or dispose of Bitcoin in accordance with the law.

4(b) AFFIRMATION OF RIGHTS.—This Act affirms and

5 protects the rights of persons to maintain full lawful con6 trol over the Bitcoin and other digital assets of those indi7 viduals, recognizing that the ability to maintain self-cus8 tody of private keys is fundamental to the principles of
9 financial sovereignty, privacy, and personal liberty in the10 digital age.