US House Proposes ARMA Bill to Build Federal Bitcoin Reserve

The US House of Representatives unveiled the American Reserve Modernization Act (ARMA) on June 5, aiming to establish a federal strategic Bitcoin reserve. The bill tasks the Treasury Department with managing a Strategic Bitcoin Reserve alongside a separate Digital Asset Stockpile for other cryptocurrencies held by the government.

ARMA mandates that Bitcoin obtained through criminal or civil forfeiture proceedings be allocated to this Strategic Bitcoin Reserve. Other digital assets are to be stored and administered separately, reflecting the government’s nuanced approach to different types of crypto holdings.

Notably, Bitcoin placed in the reserve cannot be sold or used as collateral for at least 20 years, and after this long lockup period, sales would be capped at 10% of total holdings annually over the next two years. Forked coins and airdrops generated from government-owned Bitcoin must be held for a minimum of five years. This long-term custodial approach indicates a deliberate strategy to treat Bitcoin as a scarce, durable asset within federal coffers, avoiding short-term liquidity temptations.

Transparency is baked into the bill. The Treasury would issue quarterly proof-of-reserve reports detailing Bitcoin quantities, transaction histories, and private key custody, with independent auditors verifying these data. This level of disclosure aims to build trust and accountability with the market and public.

Beyond safeguarding seized Bitcoin, ARMA calls for a joint Treasury-Commerce Department study due within 180 days of enactment. This study will explore budget-neutral options to grow the government’s Bitcoin holdings, explicitly excluding debt-fueled acquisitions or new taxes. Possible avenues include converting other digital assets, reallocating assets from forfeiture, and utilizing tariff revenue or donations.

Representative Nick Begich (R) framed Bitcoin as a decade-long store of value and suggested that formalizing it as a national asset would reinforce US financial resilience and innovation leadership. Still, the initiative raises questions about how the strategic reserve might influence market dynamics and whether a 20-year holding period can withstand changing economic or political winds.

Traders should watch the Treasury’s forthcoming report for clues on government accumulation strategies and Bitcoin’s evolving role in federal financial policy. The bill’s progress through Congress will be crucial to monitor, as ARMA could chart a new path for digital assets in public finance–and potentially ripple through Bitcoin markets worldwide.