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The United States Congress has reopened debate over the future role of Bitcoin in federal financial strategy after Representative Nick Begich introduced the American Reserve Modernization Act (ARMA).
The proposal, introduced alongside 16 co-sponsors, would require the U.S. government to hold federally controlled Bitcoin for at least 20 years while authorizing the Treasury Department to acquire up to one million BTC over five years.
The legislation arrives as digital asset regulation remains a central issue for crypto investors and policymaker. Unlike executive actions, the ARMA bill would place the reserve into permanent statutory law.
Under the proposal, all federally held Bitcoin including assets seized through criminal investigations such as the Silk Road and Bitfinex cases would be locked under a mandatory 20-year holding period.
Estimates cited in reports suggest the U.S. government currently controls between 198,000 and 328,000 BTC, valued at roughly $25 billion at current market prices.
The Treasury Department would also gain authority to acquire up to 200,000 BTC annually over five years, eventually building a reserve target of one million Bitcoin.
According to supporters of the bill, the acquisitions would be conducted using “budget-neutral” mechanisms rather than direct taxpayer funding.
“America’s reserves balance sheet is a critical component of our nation’s insurance policy, bolstering our currency and providing assurance during times of uncertainty.”
Nick Begich, in comments shared following the bill’s introduction.
For crypto investors, the proposal marks one of the clearest attempts yet by U.S. lawmakers to formally position Bitcoin alongside traditional reserve assets such as gold.
The 20-year lock-up provision has become the defining feature of the ARMA proposal.
Supporters argue the measure is intended to ensure long-term policy continuity and prevent future administrations from liquidating strategic Bitcoin holdings during political or market cycles.
The bill builds directly on the earlier BITCOIN Act framework and attempts to transform the reserve concept from a temporary executive initiative into enduring federal policy.
Analysts say the move could significantly influence institutional confidence in Bitcoin, particularly as sovereign-level adoption becomes a growing narrative in crypto markets.
The Bitcoin Policy Institute publicly endorsed the proposal, describing it as a major development for federal Bitcoin custody standards.
The legislation also reportedly includes provisions tied to federal digital asset custody and reserve management standards.
Also, to areas that have become increasingly important following past concerns surrounding government crypto storage practices.
The ARMA proposal arrives amid heightened speculation surrounding the White House’s broader digital asset agenda.
Earlier this month, Patrick Witt indicated that a major announcement tied to the administration’s Bitcoin reserve plans could be imminent.
“We’ll have an announcement. I wish I could say more… It’s a breakthrough as far as getting everything in place, legally sound, properly safeguarding the assets.”
Patrick Witt, Executive Director, President’s Council of Advisors for Digital Assets.
For investors and market participants, the proposed reserve framework could strengthen the perception of Bitcoin as a strategic macro asset rather than a purely speculative instrument.
The possibility of the U.S. government committing to long-term BTC accumulation may also reinforce bullish supply-side narratives, particularly given Bitcoin’s fixed issuance model.
At the same time, the legislation still faces significant hurdles before becoming law.
Congressional committee hearings are expected in the coming weeks, where lawmakers will evaluate the bill’s fiscal implications, reserve management structure, and broader impact on U.S. financial policy.
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