US lawmakers move to institutionalize a Bitcoin reserve, requiring a 20-year lockup on all forfeited digital assets to bolster national holdings.
Legislation to lock forfeited Bitcoin into a 20-year reserve reduces liquid supply and codifies government backing.
New legislative proposals aim to formalize a national Bitcoin reserve by mandating a 20-year holding period for all assets seized through civil and criminal forfeiture. This policy shift effectively codifies the Trump administration's strategic reserve strategy, significantly reducing the circulating supply of government-held digital assets.
The policy would require the US government to hold all Bitcoin seized through civil and criminal forfeiture for a mandatory 20-year period, effectively removing those assets from immediate circulation.