US lawmakers introduced the American Reserve Modernization Act (ARMA) on May 22, establishing a Strategic Bitcoin Reserve that would require the nation to acquire approximately 1 million Bitcoin over five years. The bipartisan bill, sponsored by Representative Nick Begich and backed by 16 co-sponsors including Representatives Jared Golden and Mike Carey, would lock holdings for a minimum 20-year period unless deployed to reduce national debt. The proposal addresses a structural gap: the US currently holds 328,372 Bitcoin—more than any other nation-state—yet operates without formal federal policy governing the assets.
Why Congress Is Moving on Bitcoin Now
The US Treasury has accumulated Bitcoin primarily through civil asset forfeiture and law enforcement seizures, but historical practice saw these holdings liquidated through court orders rather than retained strategically. ARMA represents a shift toward treating Bitcoin as a long-term reserve asset comparable to gold or foreign currency reserves. Representative Jared Golden stated the core rationale: “The US is already one of the largest holders of Bitcoin in the world. But Congress has never set a federal policy on what to do with that asset.” The bill builds on earlier efforts, including the July 2024 BITCOIN Act and its March 2025 update, signaling growing congressional consensus around digital asset infrastructure.
Reserve Structure and Market Implications
ARMA designates the US Treasury Department as custodian of the Strategic Bitcoin Reserve and employs a budget-neutral acquisition strategy, meaning no direct taxpayer funding. The current US holdings—valued at approximately $25.5 billion—would form the foundation of the reserve. The bill mandates quarterly proof-of-reserve reports and independent third-party audits, creating transparency mechanisms absent from current federal crypto holdings. Patrick Witt, President’s Council of Advisors for Digital Assets, called ARMA “Version 2” of federal Bitcoin policy, stating it represents “a breakthrough as far as getting everything in place, legally sound, properly safeguarding the assets.” Matt Cole, Strive CEO, characterized the legislation as potentially the “single most important crypto legislation” to emerge from Washington.
Broader Implications for Federal Crypto Governance
ARMA signals institutional acceptance of Bitcoin as a reserve asset within federal financial architecture. The 20-year minimum holding period removes short-term volatility concerns and aligns with long-term holder behavior across crypto markets—15 million BTC globally remain held long-term. The bill also protects individual digital asset ownership and self-custody rights, expanding beyond reserve policy to establish foundational crypto property law. As national debt exceeded $39 trillion this week, policymakers appear to view strategic Bitcoin accumulation as a hedge against currency debasement and fiscal pressure.
What Happens Next
The bill must navigate committee review and floor votes in both chambers. ARMA’s bipartisan sponsorship—rare for crypto legislation—suggests institutional support, though passage remains uncertain. The five-year acquisition timeline assumes market conditions remain stable and Congress maintains commitment across multiple budget cycles. The proof-of-reserve requirement establishes precedent for federal transparency on digital assets, potentially influencing how other nations structure their own Bitcoin reserves.
