U.S. Committees Tackle Crucial Cryptocurrency Legislative Drafts

In a significant move for cryptocurrency regulation, U.S. House committees are examining two draft bills that could reshape how Bitcoin reserves and crypto assets are managed. The first bill proposes that the federal Bitcoin reserves be secured from sale for two decades, while the second aims to bring clarity to the tax implications of specific crypto transactions, including mining, staking, and investments.

From Presidential Order to Federal Law?

The Financial Services Committee will deliberate the American Reserve Modernization Act of 2026, marked as H.R. 8957. Introduced by Republican Representative Nick Begich, the bill already enjoys wide bipartisan support from more than 20 other representatives, including Democrat Jared Golden. This initiative seeks to enshrine a federal law to safeguard the strategic Bitcoin reserves initiated by President Donald Trump’s executive order in March 2025. It mandates a compulsory retention period, forbidding any sale or exchange of the Bitcoin reserves for 20 years.

The regulation aims to transition the strategic Bitcoin reserve into a binding federal statute under the Department of the Treasury.

According to the proposal, the Treasury must establish a secure storage infrastructure within 180 days of the law’s activation. Independent auditors will produce quarterly reports verifying the reserves. The primary Bitcoin source will be confiscated from legal and penal proceedings, eschewing new purchases or tax revenue as a source. Other digital assets will be allocated to a separate “Digital Asset Stockpile.”

This sales prohibition will ensure the government’s Bitcoin holdings do not flood the market within the next two decades. Consequently, the government will not transform into a competing purchaser due to the lack of new acquisitions.

How Does the Crypto Tax Bill Change the Landscape?

Meanwhile, the Ways and Means Committee, led by Jason Smith, will examine the 114-page Digital Asset Tax Certainty Act at 10:00 Eastern Time. This legislative proposal eliminates the need for gain or loss reporting on eligible network or transaction fees paid in crypto, provided they don’t exceed $10.

This simplification will facilitate tax computation by allowing small price fluctuations in suitable dollar stablecoins and providing simplified annual accounting for frequently traded digital assets, set to commence in 2028.

Mining and staking earnings will generally be treated as ordinary income, lacking the previously proposed tax deferral. Specific investment trusts can partake in staking without losing their tax statuses.

Key points from the legislative discussions include:

• Mandatory 20-year retention for federal Bitcoin reserves, with storage infrastructure to be set up within 180 days.
• Simplified tax regulations for small-scale crypto transactions starting in 2028.
• Clarity on the treatment of crypto mining and staking as ordinary income.

The discussion on Bitcoin reserves is currently limited to the committee stage. For the proposal to become law, it must navigate through the House and Senate stages before reaching the president’s desk for approval.