Lawmakers on the US House Financial Services Committee have advanced the American Reserve Modernization Act (ARMA), moving the country closer to establishing a long-term federal reserve for Bitcoin. The committee approved the legislation by a 28-21 vote.
ARMA: Creating a federal Bitcoin reserve
The proposed law, first introduced by Representative Nicholas Begich, seeks to form both a Strategic Bitcoin Reserve and a Digital Asset Stockpile under the oversight of the US Department of the Treasury. These reserves would hold Bitcoin and other digital assets acquired through criminal and civil forfeiture cases.
Under the bill, the federal government would be required to hold any Bitcoin obtained for a minimum of 20 years before any sale or transfer could take place. The legislation represents the most extended period a US government-held digital asset could be locked in reserve.
Currently, federal holdings include approximately 324,527 Bitcoin, with an estimated value of $24.7 billion, according to Arkham Intelligence.
ARMA also introduces strict transparency and reporting standards. Every federal agency managing digital assets would need to provide quarterly proof-of-reserve statements and undergo regular audits carried out by independent third parties.
| Provision | Details |
|---|---|
| Minimum holding period | 20 years |
| Current Bitcoin reserve | 324,527 BTC |
| Estimated value | $24.7 billion |
| Transparency | Quarterly proof-of-reserve and independent audits |
Mini dictionary: Arkham Intelligence is a blockchain analytics company that monitors and reports on the digital asset holdings of entities and governments.
The legislation authorizes states to deposit their own Bitcoin into the federal system and also tasks officials with researching ways to expand reserves without increasing costs for taxpayers. Additionally, it affirms American citizens’ rights to possess and manage their own Bitcoin wallets, highlighting personal control over digital assets as essential to economic and personal liberty.
Mixed reactions in Congress
Supporters see the reserve as a way to boost US financial resilience. Representative Bryan Steil argued the measure could “modernize national reserves and help reduce the deficit,” stressing its importance for maintaining global competitiveness. Connor Brown, executive director at the Bitcoin Policy Institute, described the bill’s progress as a significant step for cryptocurrency policy.
Connor Brown framed the committee’s decision as a pivotal development that signals mainstream recognition of digital assets in national strategy.
Opponents, however, questioned the wisdom of tying federal assets to Bitcoin. Representative Bill Foster cited concerns around volatility and risk, asserting that Bitcoin is unsuitable for US government investments.
Representative Foster stated, “I don’t think anyone believes that bitcoin is critical to the U.S. economy.”
The legislative initiative builds on earlier efforts, including a previous version of the proposal known as the BITCOIN Act, previously backed by Begich and Senator Cynthia Lummis.
Legislative process ahead
The ARMA bill also seeks to formalize an executive directive issued by President Donald Trump in 2025, which called for the establishment of a Bitcoin reserve using cryptocurrency already in federal custody. Trump’s directive instructed federal agencies to explore methods of growing the reserve without additional taxpayer cost.
Legal uncertainties remain regarding the Treasury Department’s authority over such reserves, as raised in July media reports. Passage by the House committee marks a milestone, but further votes are needed in both the full House of Representatives and the Senate before the proposal can be submitted to the president for signature.
