Rep. Nick Begich has taken a significant step towards formalizing the U.S. government’s approach to cryptocurrency with the introduction of the American Reserve Modernization Act (ARMA) in the House on Thursday. This proposed legislation aims to establish the U.S. Strategic Bitcoin Reserve into permanent federal law, signaling a shift in how the government engages with Bitcoin (BTC).
Supporting the bill are 16 original cosponsors, highlighting a collaborative effort to secure this initiative. The ARMA will mandate that federally held Bitcoin is locked for a minimum of 20 years, which provides a long-term commitment to this asset. Furthermore, it stipulates that any acquisition of Bitcoin must be budget-neutral, aligning with fiscal responsibility principles.
The ARMA seeks to build upon previous legislative efforts, notably the framework established by the earlier BITCOIN Act. Its provisions are designed to solidify an executive order issued by President Donald Trump in March 2025, transitioning it into a statutory requirement that would not be vulnerable to change by future administrations.
Under the provisions of the bill, the U.S. Treasury would be authorized to acquire up to 200,000 BTC annually over a five-year period, ultimately working towards a strategic reserve of one million coins. Importantly, these acquisitions are intended to avoid incurring additional taxpayer expenses, mirroring previous proposals associated with Senator Cynthia Lummis (R-WY).
Additionally, the 20-year holding requirement applies to all Bitcoin currently under federal control, which includes between 198,000 and 328,000 BTC acquired through criminal forfeiture as a result of cases linked to the Silk Road and Bitfinex hack.
The Bitcoin Policy Institute has expressed strong support for the ARMA, viewing it as a critical advancement toward enhancing federal custody of cryptocurrency. The organization labeled the bill as a pivotal moment for the strategic reserve concept, emphasizing that it would establish the reserve on a legally sound basis with defined long-term holding periods and acquisition protocols.
The legislative process for ARMA is just beginning, with committee hearings scheduled for the coming weeks. The outcomes of these hearings will offer insight into the bill’s advancement prospects and any potential modifications that may arise during deliberation.
