Rep. Nick Begich from Alaska took a significant step on Thursday by introducing new legislation aimed at establishing a permanent U.S. strategic bitcoin reserve. The proposed legislation, known as the American Reserve Modernization Act (ARMA), aims to codify an executive order issued by former President Donald Trump in March 2025, providing a solid legal framework for the initiative.
The ARMA has gained notable bipartisan support, along with over a dozen co-sponsors in Congress, and proposes that the Treasury Department oversee the strategic reserve. It also plans to create an additional digital asset stockpile specifically for federally held cryptocurrencies beyond bitcoin. Begich rationalized the need for the reserve by comparing bitcoin to gold, indicating both assets are recognized by the market as top stores of value in their respective categories. “When you look at gold, it is the dominant precious metal reserve,” he stated in an interview. He pointed out that bitcoin captures around 60% of the total market cap of the entire cryptocurrency sector, positioning it similarly to gold.
The ARMA builds upon the earlier BITCOIN Act, which Begich had first introduced in March 2025 alongside Senator Cynthia Lummis. Under the new legislation, the Treasury would be authorized to acquire as much as 200,000 BTC annually over a span of five years, ultimately targeting a total of 1 million bitcoins—approximately 5% of the global supply. Notably, these holdings would be locked for a minimum period of 20 years.
Currently, the U.S. government possesses an estimated 328,372 bitcoins obtained through law enforcement actions, including seizures associated with the Silk Road and the recovery from the 2022 Bitfinex hack. Co-sponsor Rep. Pat Harrigan from North Carolina emphasized the necessity of establishing a coherent approach to manage this growing stockpile, arguing, “The United States government already holds billions in seized bitcoin with no coherent strategy for managing it, and that needs to change.”
The introduction of ARMA coincides with a broader trend of crypto-friendly legislation gaining traction in Washington. Recently, the Senate Banking Committee advanced the Digital Asset Market Clarity Act with a 15-9 bipartisan vote, moving it to the full Senate for consideration. Notably, two Democrats crossed party lines to support the initiative, prompting Senator Lummis to suggest that a Senate vote could occur by mid-June, although she acknowledged that might be an optimistic timeline.
This legislative surge also comes as the Treasury Department intensifies its focus on combating illicit finance tied to cryptocurrencies. Under an initiative known as Operation Economic Fury, the U.S. has seized nearly $500 million in Iranian cryptocurrency assets, further solidifying calls for a comprehensive government strategy to manage seized digital assets. In light of these developments, the White House has hinted at an imminent formal announcement regarding the operational status of the strategic bitcoin reserve, with officials noting that a critical legal obstacle has been overcome.
