In a significant move for cryptocurrency enthusiasts, Rep. Nick Begich (R-AK) has introduced the American Reserve Modernization Act (ARMA), legislation that aims to officially establish a strategic reserve for Bitcoin within federal law. This initiative is seen as a way to honor commitments made by former President Donald Trump during his campaign, particularly as the U.S. approaches important midterm elections.
The proposed act seeks to instruct the Treasury Department to create and maintain a Bitcoin reserve for a minimum of 20 years. Additionally, it would establish a stockpile for other cryptocurrencies that the government might hold. Part of the bill’s framework includes consolidating what is estimated to be billions of dollars in digital assets scattered across various federal agencies, often obtained through enforcement actions like forfeitures and penalties. To ensure transparency, the ARMA mandates a proof-of-reserve report.
As of last month, the strategic reserve for Bitcoin initiated by Trump via executive order is still undergoing development. Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, shared at a recent Las Vegas conference that the current administration has been investing considerable time in deciphering the legal implications surrounding the initiative.
The bill is co-led by Rep. Jared Golden (D-ME), who emphasizes the need for legislative backing to ensure that the management of cryptocurrency assets is not left to the discretion of the executive branch. With 17 original co-sponsors, including several who have publicly shown interest in digital assets, the legislation is garnering bipartisan support.
Golden stated that unlike past administrations that have auctioned off cryptocurrencies, the stockpile proposed under ARMA would carry the “weight of law,” providing a more consistent policy framework. In contrast, Treasury Secretary Scott Bessent had previously tempered excitement about purchasing Bitcoin by clarifying that no federal agency would make such acquisitions.
Rep. Begich articulated that this legislation aims to expand the United States’ portfolio of reserve assets. He argues that having a strategic reserve for cryptocurrencies could serve as an insurance policy, safeguarding these assets from “the whims of Congress or future administrations.”
While the proposal has its proponents, it has also faced criticism. Notably, Rep. Maxine Waters (D-CA), ranking member of the House Financial Services Committee, has expressed concerns regarding the implications of a government-held Bitcoin reserve. She argues that cryptocurrencies lack the inherent value typical of essential reserve assets that support the U.S. economy, suggesting that such a reserve could predominantly benefit individuals connected to the Trump administration.
As discussions about the ARMA Act progress, its outcome could have substantial implications for the future of digital asset policy in the United States.
