A new legislative initiative aims to solidify a federal Bitcoin reserve, building on a previous executive order from March 2025 by then-President Donald Trump. The American Reserve Modernization Act (ARMA), introduced by Representative Nick Begich (R-AK) and supported by 16 original co-sponsors, seeks to formally establish a U.S. Strategic Bitcoin Reserve.
The proposed legislation stipulates that any Bitcoin held by the federal government must be locked for a minimum of 20 years. It further empowers the Treasury Department to purchase up to 200,000 Bitcoin annually over five years, with a target of accumulating one million Bitcoin in total. Notably, this provision encompasses Bitcoin already in possession of the government due to criminal forfeitures, including assets from high-profile cases such as Silk Road and Bitfinex seizures.
The anticipation surrounding the reserve stems from recent remarks made by Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, hinting at a forthcoming “big announcement” regarding the administration’s plans for a Bitcoin reserve.
The ARMA legislation builds upon President Trump’s earlier executive order—an action that can be undone by subsequent administrations but would take additional legislative effort to reverse once codified into federal law. This legislative framework aims to provide a long-term, stable foundation for Bitcoin holdings within the federal government.
Current estimates indicate that the U.S. government controls between 198,000 and 328,000 Bitcoin, valued at approximately $25 billion based on prevailing market prices. The bill also suggests that there should be a separate stockpile for other federally held cryptocurrencies, which would operate alongside the Bitcoin reserve under the Treasury Department’s oversight.
Begich has likened Bitcoin’s standing in the cryptocurrency market to gold’s role among precious metals, highlighting that Bitcoin commands roughly 60% of the entire crypto market capitalization.
As discussions around cryptocurrency policy gain traction in Washington, the Bitcoin Policy Institute has endorsed the ARMA proposal, characterizing it as a significant advancement for sound Bitcoin policy in the United States. Following the recent bipartisan passage of the CLARITY Act by the Senate Banking Committee, retail traders are keenly awaiting a vote on the legislation, hoping for a swift progression before the summer recess.
Meanwhile, Bitcoin’s market performance has been somewhat muted, with its price slipping 0.6% over the past day and struggling to remain above the $77,000 mark. Retail sentiment regarding Bitcoin remains bearish, though activity levels on platforms such as Stocktwits indicate consistent discussion within the community.
