U.S. Representative Nick Begich from Alaska has introduced a groundbreaking bill that could change the landscape of the cryptocurrency market. Titled the American Reserve Modernization Act (ARMA), this proposal aims to institutionalize the process of establishing a Strategic Bitcoin Reserve for the United States and would grant the Treasury Department the authority to acquire up to 1 million BTC over the next five years.
Ambitious Bitcoin acquisition target
Moving beyond Begich’s previous suggestions, ARMA seeks to transform the executive order signed by President Donald Trump in March 2025, which created a Strategic Bitcoin Reserve, into a permanent law. By doing so, the measure would make it more difficult for subsequent presidents to reverse this policy easily.
Under the bill, the U.S. Treasury would be permitted to purchase up to 200,000 BTC per year, with a cap of 1 million BTC in total. This would represent about 5 percent of Bitcoin’s maximum supply. All acquired Bitcoin would have to be held for at least 20 years, and could only be sold under specified conditions, such as to reduce federal debt.
Highlighting Bitcoin’s emergence as a leading store of value in the digital asset space, comparable to gold’s role among precious metals, the proposed regulation also stresses the need for greater flexibility in the Federal Reserve’s reserve asset strategy.
The bill classifies Bitcoin as a “tier-one” strategic reserve asset, with all other crypto assets held by the federal government managed separately from Bitcoin reserves.
Confiscated Bitcoin to strengthen reserves
ARMA also addresses the fate of Bitcoin seized in federal operations. Instead of selling or auctioning off these assets, the bill proposes that they be credited directly to the Strategic Bitcoin Reserve. It notes that federal agencies currently control more than 328,000 BTC, all of which would be centralized under one management structure.
North Carolina Representative Pat Harrigan points out that although the federal government holds Bitcoin worth billions of dollars, it currently lacks a comprehensive management and custody plan. He argues that this fragmented approach should be replaced with a unified, institutional reserve structure.
ARMA mandates that Bitcoin reserves be safeguarded with advanced security protocols. Recommendations include air-gapped storage solutions, distributed private key management, multi-signature mechanisms, and preparations for quantum-resistant cryptography. The bill also calls for quarterly reserve proof reports, independent audits, and stringent Congressional oversight.
Glossary: Air-gapped storage means keeping digital assets offline to prevent external access. Multi-signature mechanism requires approval from multiple parties for a transaction. Quantum-resistant cryptography refers to encryption methods designed to withstand threats from quantum computers.
Citizen rights and budget implications
Importantly, the proposal reaffirms the right of U.S. citizens to freely acquire, transfer, and self-custody crypto assets. Non-Bitcoin cryptocurrencies would be managed in a separate federal stockpile and tracked independently.
No additional federal budget is planned for Bitcoin purchases; the intent is to keep the initiative budget-neutral. To achieve this, the bill suggests revaluing the Federal Reserve’s gold certificates from their statutory price of $42.22 per ounce to current market rates, thereby unlocking funds for Bitcoin acquisitions without new taxes.
Broad Congressional backing
The bill has bipartisan support. West Virginia Representative Riley Moore underscores that U.S. reserve assets must adapt to a changing global economy, with Bitcoin poised to play a pivotal role in the nation’s emerging financial infrastructure.
Key discussions focus on the growing need for the United States to update its core financial reserves and acknowledge how digital assets will shape the future structure of American finance.
While ARMA awaits deliberation in the House of Representatives, broader crypto-related legislation is also in progress in the Senate. The Senate Banking Committee recently advanced the Clarity Act, with Wyoming Senator Cynthia Lummis indicating a mid-June vote is expected, though she cautions the timeline is optimistic.
If enacted, ARMA would provide a clear legal framework for a U.S. Strategic Bitcoin Reserve, set precise rules for storage and audit of public Bitcoin holdings, and funnel seized digital assets into long-term national reserves.
