The committee voted 28-21 to report H.R. 8957 favorably, marking a crucial step in the legislative process. The bill, sponsored by Rep. Nicholas Begich of Alaska, aims to create a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile within the Treasury Department. This legislation builds upon President Donald Trump’s executive order from March 6, 2025, which directed the establishment of a Strategic Bitcoin Reserve and outlined guidelines for asset management.

Under the proposed legislation, qualifying federal Bitcoin would be placed in the reserve, while other digital assets would be held in a separate stockpile. Assets required for other purposes would be excluded from the reserve, ensuring that only relevant government-owned holdings are considered for inclusion.

One key provision of the bill is the requirement for Bitcoin deposited in the reserve to remain there for at least 20 years from enactment. During this holding period, the assets cannot be sold, swapped, auctioned, or disposed of in any way. Additionally, the Treasury would be tasked with conducting a study within one year of enactment to explore possible conditions for early sales and make legislative recommendations for exceptions.

The legislation also includes provisions for annual reporting and oversight, with requirements for public cryptographic proof of reserves, annual reports on holdings and transactions, and verification by an independent third-party auditor. The Comptroller General would oversee the reserve, reports, and audits on a regular basis to ensure compliance.

Furthermore, the bill mandates that Treasury and Commerce conduct a study within 180 days of enactment to assess the risks, costs, and potential benefits of acquiring additional Bitcoin. This study would inform future decisions on expanding the reserve’s holdings.

Overall, the American Reserve Modernization Act of 2026 aims to establish a clear framework for managing federal Bitcoin holdings and ensuring transparency and accountability in the process. The next steps involve further legislative action to solidify these obligations and potentially expand the reserve’s holdings in the future.

A recent ruling from a federal judge in New York has denied Susquehanna’s attempt to freeze nearly $100 million connected to traders accused of profiting from insider information before China announced a crackdown on cross-border trading platforms. The U.S. District Court for the Southern District of New York, Judge Arun Subramanian, determined that Susquehanna Securities and Susquehanna Investment Group had not demonstrated that they would suffer irreparable harm without a preliminary injunction.

The lawsuit, filed on June 29 by Susquehanna against 100 unnamed defendants, alleged violations of the Securities Exchange Act of 1934 and unjust enrichment. Citadel Securities later joined the case as an intervenor. The dispute revolved around trading activities before a May 22 announcement regarding China’s crackdown on cross-border trading platforms. Susquehanna claimed that the defendants traded using material nonpublic information before the news caused a significant decline in certain securities.

Initially targeting 100 defendants, Susquehanna narrowed its request for a preliminary injunction to 40 individuals. The company sought to prevent them from transferring or disposing of proceeds held at third-party brokerage firms that were allegedly gained from insider trading. Alternatively, Susquehanna requested an attachment order to secure potential judgment assets.

However, Judge Subramanian found that Susquehanna had not provided enough evidence to prove that the defendants were likely to conceal or dissipate their assets before a judgment could be enforced. The court considered domestic and foreign defendants separately, noting that the absence of some domestic defendants did not necessarily indicate an intention to evade enforcement of a future judgment.

Regarding trading patterns, Susquehanna’s argument that defendants engaged in suspicious trading activities did not establish a likelihood of insider trading. The court pointed out that publicly available information or market signals could have influenced defendants’ trading decisions, which would not qualify as insider trading.

The ruling highlighted the lack of concrete evidence connecting the defendants to insider trading activities, as well as the failure to identify the alleged tipper or the fiduciary duty owed. The court emphasized that the large number of defendants who were not linked to each other could support alternative explanations for their trading behavior.

The case stemmed from a regulatory action on May 22 involving Chinese scrutiny of overseas trading services for mainland investors. This crackdown on cross-border brokerage activities followed previous restrictions on cryptocurrency and asset tokenization in China.

Ultimately, the court rejected Susquehanna’s alternative request for an attachment order, citing the company’s failure to establish likely success on the merits of its claims. The ruling underscored the lack of sufficient evidence to support Susquehanna’s allegations of insider trading and unjust enrichment.

In conclusion, the court denied both the preliminary injunction and the attachment request, allowing the earlier order restricting the funds to dissolve. The decision highlights the challenges of proving insider trading allegations and the importance of presenting substantial evidence in legal proceedings.