Members of the US House of Representatives, Nick Begich and Jared Golden, have introduced the American Reserve Modernization Act (ARMA), a bill calling for the US Treasury to establish both a Strategic Bitcoin Reserve and a Digital Asset Stockpile. If passed, this act would prohibit federal agencies from selling their bitcoin holdings for at least 20 years. Furthermore, the Treasury would be authorized to accumulate up to 1 million BTC—around 5% of the world’s total bitcoin supply—over the next five years, with a cap of 200,000 BTC per year.
Key elements and objectives of ARMA
Building on Begich’s earlier BITCOIN Act, ARMA seeks to transform a short-term executive order signed by President Donald Trump in March 2025 into a lasting federal law. While the bill has 18 co-sponsors, only one, Jared Golden, is a Democrat; the rest are Republicans, highlighting bipartisan, but predominantly Republican, backing.
A standout provision in ARMA is the requirement that all bitcoin acquired by the state be locked in reserve for no less than 20 years. This would also apply to the US government’s current stash of about 328,000 BTC, valued at approximately $25.5 billion, making the United States the largest nation-state holder of bitcoin today.
Nick Begich compared bitcoin’s dominance in the crypto market to gold’s standing among precious metals, noting that bitcoin represents about 60% of the total crypto market value. Jared Golden emphasized that, while the US is already among the world’s largest bitcoin holders, Congress has yet to develop any policy for managing these assets.
Glossary: A Strategic Bitcoin Reserve is a digital asset stockpile held by the US Treasury on behalf of the nation, managed for long-term retention, much like gold reserves, to avoid sudden sales or politically motivated moves.
Under the proposed legislation, proceeds from any bitcoin sales can be used solely for reducing the national debt. The priority is not acquiring new coins, but increasing the value of holding reserves already in hand or restructuring current holdings to maximize value.
The Bitcoin Policy Institute has hailed this bill as a positive step toward professionalizing the government’s approach to digital asset storage and management.
White House storage policies and risks
For ARMA to become law, it must clear committee review and floor votes in the House before being signed by the president. In the meantime, the White House is working to develop both legal and technical frameworks for storing digital assets securely. Patrick Witt, the head of the Presidential Advisors Council on Digital Assets, has noted that current executive orders can easily be reversed, underscoring the importance of formal legislation.
Witt pointed out that digital wallets within federal agencies are presently held without proper regulation, sometimes left in desk drawers, and that the US Marshals Service has faced past misconduct regarding crypto storage. The proposed new framework is intended to eliminate such risks and create a more secure and transparent custody system.
Additionally, cryptocurrencies seized or held as evidence in ongoing legal cases cannot be transferred until court proceedings conclude. Pending the resolution of legal matters, confiscated crypto assets are held in limbo—eventually to be returned to victims or transferred to the Treasury, depending on the court’s judgment.
Market impact and global comparisons
Throughout the week, bitcoin fluctuated between $77,200 and $78,100. According to CryptoAppsy data, bitcoin traded at $77,447 on Friday morning in New York, notably below last year’s high of over $99,000.
| Country | BTC Holdings | Policy |
|---|---|---|
| USA | 328,000 | Strategic reserve proposal via ARMA |
| China | 190,000 | No official policy |
| United Kingdom | 61,000 | No official policy |
| El Salvador | 6,174 | State portfolio |
The draft bill has yet to make a clear impact on market prices. With the Federal Reserve’s tight monetary stance continuing to dominate market concerns, news of a US bitcoin reserve has not significantly swayed short-term pricing. For ARMA to take effect, a Senate version of the bill, committee clearance, and presidential approval are all still required.
With its 328,000 bitcoin, the United States currently holds the largest legal reserve among nations. The country’s push to legally classify bitcoin holdings alongside gold and oil underscores its ambition to cement bitcoin as an official strategic asset. Should ARMA or the ongoing White House custody initiatives succeed, the US will have set a global precedent for sovereign crypto asset management.
