A new bipartisan legislative proposal in the U.S. House of Representatives, titled the “American Reserve Modernization Act of 2026” (ARMA), aims to establish a strategic reserve for government-held Bitcoin (BTC) with a minimum 20-year lockup period. This initiative represents a significant evolution in how U.S. government digital assets might be managed, moving away from potential immediate sales and towards long-term stewardship.
Key Takeaways
- The ARMA bill mandates that any Bitcoin held in the proposed Strategic Bitcoin Reserve must remain for at least 20 years, prohibiting sales, swaps, or encumbrances during that period.
- Unlike previous legislative attempts, ARMA does not set a specific target for purchasing Bitcoin, instead directing government agencies to research budget-neutral acquisition strategies.
- The legislation requires quarterly public proof-of-reserve disclosures and independent third-party audits for government-held digital assets to ensure transparency and accountability.
- ARMA seeks to create a formal framework for managing federal digital assets, including a separate stockpile for non-Bitcoin assets, building upon existing executive orders and Treasury policy.
- Potential acquisition methods explored by the bill include converting other assets, revaluations of gold certificates, proceeds from forfeiture proceedings, and tariff revenues.
Introduced by Representative Nick Begich (R-Alaska) and co-led by Representative Jared Golden (D-Maine), ARMA seeks to codify and expand upon President Donald Trump’s 2025 executive order concerning the creation of a national Bitcoin reserve. The bill proposes creating a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile for other digital currencies, both to be managed by the Treasury Department. The core tenet of ARMA is the stringent lock-up period, which would prevent the government from disposing of any deposited Bitcoin for two decades. Following this period, the Treasury Secretary could propose selling up to 10% of the reserve’s assets every two years.
This long-term strategy contrasts with earlier proposals, such as the BITCOIN Act, which envisioned the government acquiring a substantial amount of Bitcoin. ARMA focuses on studying and implementing “budget-neutral” mechanisms for potential future acquisitions, rather than mandating large purchases. These methods could include leveraging existing non-Bitcoin assets, revenue from forfeiture proceedings, or even tariff income. The bill also mandates a comprehensive inventory of all digital assets under federal control within 60 days of enactment, a move that would bring greater clarity to the extent of the government’s holdings, estimated by sources to be around $26 billion in various cryptocurrencies.
The legislative push reflects a broader sentiment among some policymakers to view Bitcoin not merely as a seized asset to be liquidated, but as a strategic digital asset with potential long-term value. Treasury Secretary Scott Bessent has previously indicated a policy shift towards accumulating seized Bitcoin rather than selling it, aligning with the principles behind ARMA. The proposed legislation also includes robust transparency and oversight mechanisms, such as mandatory quarterly proof-of-reserve reports and independent audits, aiming to foster public trust and prevent mismanagement.
Potential Regulatory Precedent
The ARMA bill, if enacted, could establish a significant regulatory precedent for the treatment of digital assets by the U.S. federal government. By mandating a long-term holding period and rigorous oversight, it signals a potential shift towards integrating digital assets into national financial and security strategies, akin to other strategic reserves. This approach, if adopted, might influence how other nations consider managing their own digital asset holdings and could inform future regulatory frameworks for cryptocurrencies within the U.S. and globally. The emphasis on budget-neutral acquisitions and public transparency could also set a benchmark for responsible digital asset management by state actors, potentially impacting market perceptions and encouraging more structured institutional engagement with digital assets.
Based on materials from : www.theblock.co