diff --git a/Makefile b/Makefile
index b4fad4bc0..91b71bbb8 100644
--- a/Makefile
+++ b/Makefile
@@ -6,8 +6,8 @@ PROTOCC:=protoc-c
 
 # Alpha has checksequenceverify, segregated witness+input-amount-in-sig+confidentual-transactions, schnorr, checklocktimeverify
 FEATURES := -DHAS_CSV=1 -DALPHA_TXSTYLE=1 -DUSE_SCHNORR=1 -DHAS_CLTV=1
-# Bitcoin uses DER for signatures
-#FEATURES := -DSCRIPTS_USE_DER
+# Bitcoin uses DER for signatures (Add BIP68 if it's supported)
+#FEATURES := -DSCRIPTS_USE_DER #-DHAS_BIP68
 
 TEST_CLI_PROGRAMS :=				\
 	test-cli/check-commit-sig		\
diff --git a/bitcoin/tx.c b/bitcoin/tx.c
index a7a3dcfbc..97c59f26c 100644
--- a/bitcoin/tx.c
+++ b/bitcoin/tx.c
@@ -253,8 +253,11 @@ struct bitcoin_tx *bitcoin_tx(const tal_t *ctx, varint_t input_count,
 		tx->input[i].sequence_number = 0xFFFFFFFF;
 	}
 	tx->lock_time = 0;
+#ifdef HAS_BIP68
+	tx->version = 2;
+#else
 	tx->version = 1;
-
+#endif
 	return tx;
 }
 
@@ -543,3 +546,20 @@ bool bitcoin_tx_write(int fd, const struct bitcoin_tx *tx)
 	tal_free(tx_arr);
 	return ok;
 }
+
+u32 bitcoin_nsequence(u32 locktime)
+{
+#ifdef HAS_BIP68
+	/* BIP66 style sequence numbers */
+	if (locktime >= 500000000)
+		/* A relative time.  Set bit 30, shift by 5. */
+		return 0x40000000 | ((locktime - 500000000) << 5);
+	else
+		/* A block height.  Shift by 14. */
+		return locktime << 14;
+#else
+	/* Alpha uses the original proposal: simply invert the bits. */
+	return ~locktime;
+#endif
+}
+		
diff --git a/bitcoin/tx.h b/bitcoin/tx.h
index ad8ecd51e..841100fac 100644
--- a/bitcoin/tx.h
+++ b/bitcoin/tx.h
@@ -66,4 +66,6 @@ bool bitcoin_txid_from_hex(const char *hexstr, size_t hexstr_len,
 bool bitcoin_txid_to_hex(const struct sha256_double *txid,
 			 char *hexstr, size_t hexstr_len);
 
+/* Get sequence number for a given locktime. */
+u32 bitcoin_nsequence(u32 locktime);
 #endif /* LIGHTNING_BITCOIN_TX_H */
diff --git a/test-cli/create-commit-spend-tx.c b/test-cli/create-commit-spend-tx.c
index bb20df03e..79755044d 100644
--- a/test-cli/create-commit-spend-tx.c
+++ b/test-cli/create-commit-spend-tx.c
@@ -99,8 +99,7 @@ int main(int argc, char *argv[])
 	tx->input[0].input_amount = commit->output[p2sh_out].amount;
 	tx->fee = fee;
 
-	/* Sequence number is inverted timeout. */
-	tx->input[0].sequence_number = ~locktime;
+	tx->input[0].sequence_number = bitcoin_nsequence(locktime);
 
 	if (commit->output[p2sh_out].amount <= fee)
 		errx(1, "Amount of %llu won't exceed fee",
diff --git a/test-cli/create-htlc-spend-tx.c b/test-cli/create-htlc-spend-tx.c
index 290220c3d..82b46baf0 100644
--- a/test-cli/create-htlc-spend-tx.c
+++ b/test-cli/create-htlc-spend-tx.c
@@ -171,10 +171,8 @@ int main(int argc, char *argv[])
 	}
 
 	/* If it's our own commit tx, we also need delay. */
-	if (own_commit_tx) {
-		/* Sequence number is inverted timeout. */
-		tx->input[0].sequence_number = ~locktime;
-	}
+	if (own_commit_tx)
+		tx->input[0].sequence_number = bitcoin_nsequence(locktime);
 
 	/* Leave 10,000 satoshi as fee (if we can!). */
 	tx->fee = 10000;
diff --git a/test-cli/scripts/generate-block.sh b/test-cli/scripts/generate-block.sh
index 1d53ee41d..8975723c1 100755
--- a/test-cli/scripts/generate-block.sh
+++ b/test-cli/scripts/generate-block.sh
@@ -1,5 +1,5 @@
 #! /bin/sh
-# Query bitcoind to get (first) unspent output to spend.
+# Generate a block.
 
 set -e
 
@@ -10,6 +10,10 @@ case $STYLE in
     alpha)
 	# This is a one-shot in alpha, it seems.
 	$CLI setgenerate true
+	# Avoid median time bug by generating 11 blocks
+	if [ -n "$INIT" ]; then
+	    for i in `seq 10`; do $CLI setgenerate true; done
+	fi
 	;;
     bitcoin)
 	# Initially we need 100 blocks so coinbase matures, giving us funds.
diff --git a/test-cli/scripts/test.sh b/test-cli/scripts/test.sh
index 991f9accd..1b6e063fb 100755
--- a/test-cli/scripts/test.sh
+++ b/test-cli/scripts/test.sh
@@ -4,6 +4,9 @@ set -e
 # Expect to be run from test-cli dir.
 . scripts/vars.sh
 
+# How long to lock transactions (unrealistically short, for testing)
+TEST_LOCKTIME=30
+
 getpubkey()
 {
     $CLI validateaddress $1 | sed -n 's/.*"pubkey" *: "\([0-9a-f]*\)".*/\1/p'
@@ -17,11 +20,9 @@ getprivkey()
 send_after_delay()
 {
     # For bitcoin testing, OP_CHECKSEQUENCEVERIFY is a NOP.
-    if [ $STYLE = alpha ]; then
-	# Alpha has a median time bug (which can't be triggered in bitcoin),
-	# triggered if we have < 11 blocks.  Generate them now.
-	for i in `seq 11`; do scripts/generate-block.sh; done
-	# OP_CHECKSEQUENCEVERIFY will stop us spending for 60 seconds.
+    # But nSequence enforcement is enough to stop it.
+    if [ $SEQ_ENFORCEMENT = true ]; then
+	# OP_CHECKSEQUENCEVERIFY will stop us spending for $TEST_LOCKTIME seconds.
 	for tx; do
 	    if $CLI sendrawtransaction $tx 2>/dev/null; then
 		echo OP_CHECKSEQUENCEVERIFY broken! >&2
@@ -34,11 +35,15 @@ send_after_delay()
 
     # Confirm them.
     scripts/generate-block.sh
-    echo Waiting for CSV timeout. >&2
-    sleep 61
+
+    # Bitcoin bumps block times so that blocks are valid.
+    TIME=$($CLI getblockheader $($CLI getbestblockhash) | sed -n 's/.*"time": \([0-9]*\),/\1/p')
+    echo Waiting for CSV timeout $(( $TIME + $TEST_LOCKTIME - $(date -u +%s) )) seconds. >&2
+
     # Move median time, for sure!
-    for i in `seq 11`; do scripts/generate-block.sh; done
-	
+    while [ `date -u +%s` -lt $(($TIME + $TEST_LOCKTIME)) ]; do sleep 1; done
+    for i in `seq 6`; do scripts/generate-block.sh; done
+
     for tx; do
 	$CLI sendrawtransaction $tx
     done
@@ -101,7 +106,7 @@ B_FINALPUBKEY=`getpubkey $B_FINALADDR`
 # Both sides say what they want from channel (A offers anchor)
 $PREFIX ./open-channel --offer-anchor $A_SEED $A_TMPPUBKEY $A_FINALPUBKEY > A-open.pb
 # B asks for a (dangerously) short locktime, for testing unilateral close.
-$PREFIX ./open-channel --locktime=60 $B_SEED $B_TMPPUBKEY $B_FINALPUBKEY > B-open.pb
+$PREFIX ./open-channel --locktime=$TEST_LOCKTIME $B_SEED $B_TMPPUBKEY $B_FINALPUBKEY > B-open.pb
 
 # Now A creates anchor (does not broadcast!)
 $PREFIX ./create-anchor-tx A-open.pb B-open.pb $A_AMOUNT $A_CHANGEPUBKEY $A_TXIN > A-anchor.tx
@@ -175,7 +180,7 @@ $PREFIX ./create-commit-tx A-open.pb B-open.pb A-anchor.pb $A_TMPKEY $A_UPDATE_P
 $PREFIX ./create-commit-tx B-open.pb A-open.pb A-anchor.pb $B_TMPKEY $B_UPDATE_PKTS > B-commit-2.tx
 
 # Now, A offers an HTLC for 10001 satoshi.
-$PREFIX ./update-channel-htlc $A_SEED 3 10001 $A_HTLC1 $((`date +%s` + 60)) > A-update-htlc-3.pb
+$PREFIX ./update-channel-htlc $A_SEED 3 10001 $A_HTLC1 $((`date +%s` + $TEST_LOCKTIME)) > A-update-htlc-3.pb
 A_UPDATE_PKTS="$A_UPDATE_PKTS +A-update-htlc-3.pb"
 B_UPDATE_PKTS="$B_UPDATE_PKTS -A-update-htlc-3.pb"
 
@@ -196,7 +201,7 @@ $PREFIX ./create-commit-tx A-open.pb B-open.pb A-anchor.pb $A_TMPKEY $A_UPDATE_P
 $PREFIX ./create-commit-tx B-open.pb A-open.pb A-anchor.pb $B_TMPKEY $B_UPDATE_PKTS > B-commit-3.tx
 
 # Now, B offers an HTLC for 10002 satoshi.
-$PREFIX ./update-channel-htlc $B_SEED 4 10002 $B_HTLC1 $((`date +%s` + 60)) > B-update-htlc-4.pb
+$PREFIX ./update-channel-htlc $B_SEED 4 10002 $B_HTLC1 $((`date +%s` + $TEST_LOCKTIME)) > B-update-htlc-4.pb
 A_UPDATE_PKTS="$A_UPDATE_PKTS -B-update-htlc-4.pb"
 B_UPDATE_PKTS="$B_UPDATE_PKTS +B-update-htlc-4.pb"
 
@@ -237,7 +242,7 @@ if [ x"$1" = x--unilateral ]; then
     $PREFIX ./create-commit-spend-tx A-commit-4.tx A-open.pb B-open.pb A-anchor.pb $A_FINALKEY $A_CHANGEPUBKEY $A_UPDATE_PKTS > A-spend.tx
     $PREFIX ./create-htlc-spend-tx A-open.pb B-open.pb A-commit-4.tx +A-update-htlc-3.pb A-update-accept-4.pb $A_FINALKEY $A_CHANGEPUBKEY > A-htlc-3-spend.tx
     $PREFIX ./create-htlc-spend-tx -- A-open.pb B-open.pb A-commit-4.tx -B-update-htlc-4.pb A-update-accept-4.pb $B_FINALKEY $B_CHANGEPUBKEY > B-htlc-4-spend.tx
-    # HTLCs conveniently set to 60 seconds, though absolute.  Script
+    # HTLCs conveniently set to $TEST_LOCKTIME seconds, though absolute.  Script
     # shouldn't be that slow, so they should be unspendable to start.
     send_after_delay `cut -d: -f1 A-spend.tx` `cut -d: -f1 A-htlc-3-spend.tx` `cut -d: -f1 B-htlc-4-spend.tx` > A-spend.txids
     exit 0
diff --git a/test-cli/scripts/vars.sh b/test-cli/scripts/vars.sh
index 60a882e2e..bbde8f7c4 100644
--- a/test-cli/scripts/vars.sh
+++ b/test-cli/scripts/vars.sh
@@ -6,12 +6,18 @@ if grep -q ^FEATURES.*ALPHA ../Makefile; then
     REGTESTDIR=alpharegtest
     CLI="alpha-cli -datadir=$DATADIR -regtest -testnet=0"
     DAEMON="alphad -datadir=$DATADIR"
+    SEQ_ENFORCEMENT=true
 else
     STYLE=bitcoin
     CLI="bitcoin-cli -regtest"
     DATADIR=$HOME/.bitcoin
     REGTESTDIR=regtest
     DAEMON="bitcoind -regtest"
+    if grep ^FEATURES ../Makefile | cut -d'#' -f1 | grep -q BIP68; then
+	SEQ_ENFORCEMENT=true
+    else
+	SEQ_ENFORCEMENT=false
+    fi
 fi
 
 #PREFIX="valgrind --vgdb-error=1"