A bipartisan bill in the U.S. House of Representatives would create a formal strategic bitcoin reserve for the federal government and bar the sale or transfer of those holdings for at least 20 years, marking a major policy shift in how Washington treats digital assets.
The American Reserve Modernization Act of 2026 (ARMA), introduced Thursday by Rep. Nick Begich of Alaska and Rep. Jared Golden of Maine, would turn an existing executive order into law and embed bitcoin into the nation’s long-term reserve strategy.
Key provisions: 20-year lockup and limited future sales
Under the bill, any bitcoin placed into the Strategic Bitcoin Reserve could not be “sold, swapped, auctioned, encumbered, or otherwise disposed of” for a minimum of 20 years.
After that lockup period:
- the Treasury Department could sell no more than 10% of total holdings in any two-year period
- any sale would require a recommendation from the Treasury Secretary
The proposal would also create a separate Digital Asset Stockpile inside the U.S. Treasury to hold non-bitcoin digital assets.
Formalizing Trump-era executive order
ARMA would codify a 2025 executive order issued by former President Donald Trump that directed seized bitcoin into a national stockpile instead of liquidating it.
Treasury policy, reaffirmed in January by Treasury Secretary Scott Bessent, already channels confiscated bitcoin into federal reserves rather than auctioning it. ARMA would turn that policy into statutory law and expand it into a broader reserve framework.
Shift from prior “bitcoin act” drafts
Earlier draft legislation, circulated under the name “BITCOIN Act,” had proposed that the U.S. acquire up to 1 million bitcoin within five years, potentially adding up to 200,000 bitcoin annually.
The new ARMA text:
- removes the explicit 1 million bitcoin target
- directs the Departments of Treasury and Commerce to identify budget-neutral ways to increase bitcoin and digital asset holdings
Potential acquisition sources named in the bill include:
- conversion of non-bitcoin assets
- revaluation of gold certificates
- proceeds from forfeitures and certain tariffs
- cooperative arrangements with state governments
Accounting, audits, and proof-of-reserves
The ARMA framework places heavy emphasis on transparency and oversight.
The bill would require:
- every federal agency to produce a full accounting of its digital asset holdings within 60 days of the law taking effect
- quarterly public proof-of-reserve reports for the Strategic Bitcoin Reserve and Digital Asset Stockpile
- independent third-party audits to verify holdings
According to independent data cited around the proposal, the U.S. government currently holds about $26 billion in digital assets, mainly bitcoin, ether, and usdt. Estimates put the federal bitcoin stash at roughly 328,372 BTC, valued at more than $25.5 billion.
Market structure implications
The planned 20-year lockup would effectively remove a large block of bitcoin from circulating supply. Combined with the end of routine government auctions of seized coins, the U.S. would shift from being a periodic, unpredictable seller to a structural long-term holder.
Earlier versions of the proposal that floated annual acquisitions of as much as 200,000 bitcoin suggested a sustained source of demand. While ARMA drops hard numeric targets, its call for budget-neutral accumulation strategies still points toward a programmatic, rules-based approach to building reserves.
Traders and analysts are likely to view:
- the supply reduction via long-term lockup
- the clear constraints on future sales
- the transparent, audited reporting
as factors that could reshape supply-and-demand calculations around bitcoin over time.
Positioning bitcoin as a reserve asset
By recognizing bitcoin as a strategic reserve asset alongside traditional holdings such as gold, ARMA signals a broader policy reorientation:
- it elevates bitcoin from the status of seized property managed by law enforcement to a recognized component of national reserves
- it aligns with Secretary Bessent’s public stance favoring clearer digital asset rules and a leadership role for the U.S. in digital finance
This formal treatment of bitcoin as a long-term store of value could:
- prompt other governments to review their own digital asset strategies
- influence how large institutions think about bitcoin in the context of reserve management and asset allocation
Outlook and next steps
The bill now enters the standard legislative process in the House, where it will be subject to committee review, potential amendments, and floor consideration. Passage in both chambers and the president’s signature would be required for ARMA to become law.
If enacted, the law would:
- lock existing federal bitcoin holdings for two decades
- standardize reporting and audits of U.S. digital reserves
- give Treasury and Commerce a mandate to expand bitcoin and digital asset holdings without increasing the federal budget
For market participants, the proposal represents a structural shift: the U.S. government moving from on-and-off liquidation of confiscated bitcoin to a long-term, rules-based accumulation and holding strategy.
Curious how a U.S. bitcoin reserve could reshape crypto? Explore Bitcoin’s broader role in finance in this strategic reserve guide.
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