[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4912 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4912
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 SENATE OF THE UNITED STATES
July 31, 2024
Ms. Lummis introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
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 2024''
or the ``BITCOIN Act of 2024''.
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.
SEC. 5. BITCOIN PURCHASE PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a Bitcoin
Purchase Program which shall--
(A) purchase not more than 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 through the Bitcoin Purchase Program
for not less than 20 years.
(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 other than retiring
outstanding Federal debt instruments.
(3) Recommendations after holding period.--
(A) In general.--On the date that is 1 year 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.
(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.
SEC. 6. PROOF OF RESERVE SYSTEM.
To ensure transparency and accountability in the management of the
Strategic Bitcoin Reserve, the Secretary shall establish a quarterly
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.
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) 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.
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