US lawmakers introduced the American Reserve Modernization Act (ARMA) on May 21, 2026, requiring the federal government to hold 328,372 Bitcoin in perpetuity and establish formal custody protocols under the Treasury Department. The bill consolidates existing federal cryptocurrency seized through law enforcement into a strategic reserve, marking the first legislative attempt to codify a national Bitcoin stockpile with binding 20-year minimum holding requirements and quarterly public accounting.
Consolidating Seized Assets Into Strategic Reserve
ARMA formalizes Treasury custody of Bitcoin already held by the US government through law enforcement seizures and criminal asset forfeitures. The 328,372 Bitcoin currently scattered across federal agencies would be consolidated into a single Treasury-managed reserve valued at $25 billion or higher depending on market conditions. Representative Nick Begich, the bill’s primary sponsor alongside 17 House co-sponsors, framed the measure as foundational infrastructure: “The American Reserve Modernization Act positions the United States to lead confidently in the digital age while protecting taxpayer interests, strengthening financial sovereignty, and reinforcing the principles of transparency and sound stewardship.” The legislation mandates quarterly “Proof of Reserve” reports, independent audits, and direct congressional oversight to prevent misallocation or liquidation.
Regulatory Framework and Custody Standards
The bill establishes strict guardrails on federal Bitcoin holdings. Treasury must maintain the reserve for a minimum of 20 years, prohibiting forced sales or strategic liquidation except through congressional authorization. ARMA directs a formal study into budget-neutral acquisition strategies to potentially expand holdings beyond current seizures, though specific mechanisms remain unspecified. The legislation also protects individual self-custody rights, preventing overreach into private wallets. This framework builds directly on prior momentum: Senator Cynthia Lummis proposed the BITCOIN Act requiring 1 million Bitcoin acquisition over five years, while the Trump administration issued an executive order establishing a strategic Bitcoin reserve. The CLARITY Act recently passed the Senate Banking Committee, signaling broader congressional appetite for crypto infrastructure legislation.
Market Signal and Institutional Implications
Industry leaders view ARMA as transformational policy. Matt Cole, CEO of Strive, called it “the single most important crypto legislation that can come out of D.C. for the long-term health and security of the United States.” A $25 billion federal reserve removes Bitcoin from potential government liquidation and signals long-term commitment to digital asset sovereignty. The 20-year lock codifies stability that institutional investors and foreign governments have demanded before allocating to Bitcoin. Quarterly public accounting eliminates political pressure for emergency sales during market downturns. This transforms the US government from passive Bitcoin holder into active reserve custodian.
Next Steps and Legislative Uncertainty
ARMA has entered committee review with 17 initial co-sponsors, but no floor vote timeline has been announced. The bill must navigate Treasury objections, budget constraints, and competing legislative priorities. The budget-neutral acquisition study will determine whether Congress can expand holdings without appropriations conflicts. Passage would establish the world’s first codified sovereign Bitcoin reserve, fundamentally reshaping how central governments treat digital assets.
