House Republicans want to lock the US government's 328,372 BTC stash for 20 years

What ARMA Would Do

Rep. @NickforAlaska (R-AK) introduced the American Reserve Modernization Act (ARMA) on Thursday, alongside co-lead Rep. Jared Golden (D-ME) and more than a dozen other co-sponsors. The bill would direct the Treasury Department to create and maintain a reserve of $BTC for a minimum of 20 years, while establishing a separate stockpile for other cryptocurrencies held by the government.

The US government currently holds an estimated 328,372 $BTC accumulated through law enforcement seizures, including proceeds from the Silk Road takedown and the 2022 Bitfinex hack recovery. The bill would consolidate those holdings, which are spread across multiple federal agencies, into a single Treasury-managed reserve. The legislation also mandates the consolidation of what is believed to be billions of dollars in digital assets held across federal agencies, attained through actions like forfeitures and penalties, while providing transparency through a proof-of-reserve report. ARMA also explicitly protects Americans' self-custody rights in federal law and directs a study into budget-neutral acquisition, though it does not commit to purchasing new $BTC.

Building on Earlier Efforts

ARMA builds on the earlier BITCOIN Act, which Begich originally introduced alongside Sen. @SenLummis. Although a later administration can undo an executive order, legislative action offers the long-term stability required for such a significant strategic change, Begich noted. That vulnerability sits at the heart of the bill's rationale: the bill is aimed at safeguarding crypto from "the whims of Congress or future administrations," Begich said.

Begich hopes the US will hold about 5%, or around 1 million coins, of the world's $BTC in the reserve, which would be roughly equivalent to what the US government currently holds in gold. The bill draws a direct parallel between Bitcoin and gold as store-of-value assets, with Begich arguing the market has already made its determination on both.

The proposal is not without critics. The reserve was swiftly challenged by Rep. Maxine Waters (D-CA), the ranking member of the House Financial Services Committee, who warned of benefits for Trump insiders and argued that crypto "does not fall into these categories" of essential economic inputs, noting it has "no inherent value." The government has yet to announce any allocations.

As it stands, ARMA is primarily a codification of existing holdings rather than a vehicle for new acquisition. Whether it advances through committee before the midterm election campaign consumes Congressional floor time remains to be seen.

Sources:
Rep. Begich Official Press Release, begich.house.gov
Proposed ARMA Bill Aims to Enshrine Strategic Bitcoin Reserve Into Law, Decrypt
New US Bill Introduced to Codify Strategic Bitcoin Reserve, Bitcoin Magazine