This legislation, known as the "American Reserve Modernization Act of 2026," aims to establish a comprehensive framework for the Federal Government's management of digital assets. It mandates the creation of a **Strategic Bitcoin Reserve** within the Department of the Treasury for qualifying Bitcoin, primarily obtained through forfeiture, and a separate **Digital Asset Stockpile** for other non-Bitcoin digital assets. The Secretary of the Treasury is responsible for the oversight, security, and transparent management of these reserves, including implementing robust physical and cybersecurity measures in consultation with other federal agencies and industry experts. A core provision of the bill is the requirement for a **20-year minimum holding period** for all Bitcoin deposited into the Strategic Bitcoin Reserve, during which no Bitcoin may be sold or otherwise disposed of. After this period, the Secretary may recommend selling a limited portion, considering factors such as the national deficit, market impact, and the United States' financial resilience. The bill also outlines procedures for managing digital assets resulting from blockchain forks or airdrops, generally prohibiting their sale for five years. To ensure transparency and accountability, the legislation establishes an ongoing **Proof of Reserve system**. This system requires the Secretary to publish quarterly reports detailing holdings, transactions, and control of private keys, accompanied by public cryptographic attestations and verification by an independent third-party auditor. The Comptroller General of the United States will also conduct regular oversight of the reserve and its reporting. The act mandates the consolidation of all federal digital asset holdings, requiring agencies to account for and transfer their Bitcoin and other digital assets to the new reserves once operational. It also introduces a program for **voluntary state participation**, allowing states to store their Bitcoin in segregated accounts within the Strategic Bitcoin Reserve while retaining full title and control. Importantly, the bill explicitly affirms and protects private property rights in lawfully acquired Bitcoin, emphasizing the right to self-custody. Finally, the legislation directs the Treasury and Commerce departments to conduct a joint study on budget-neutral strategies for acquiring additional Bitcoin over the next five years. This study will explore mechanisms such as converting non-Bitcoin digital assets, utilizing Federal Reserve remittances, or through forfeitures, ensuring that any acquisition does not increase the national debt or require new appropriations.