Rep. Nick Begich, R-Alaska, has introduced the American Reserve Modernization Act, a bill that would place the proposed U.S. Strategic Bitcoin Reserve into federal law and authorize the Treasury Department to acquire up to 1 million Bitcoin over five years. The legislation , known as ARMA, builds on Begich’s earlier Bitcoin reserve proposal and seeks to codify President Donald Trump’s March 2025 executive order creating a Strategic Bitcoin Reserve and a separate U.S. Digital Asset Stockpile. By moving the reserve from executive action into statute, the bill would make the policy harder for a future administration to reverse without congressional action. Bill Would Authorize Treasury Bitcoin Purchases Under the proposal, the Treasury Department could buy up to 200,000 Bitcoin per year for five years. The target would be about 1 million BTC, equal to roughly 5% of Bitcoin’s fixed supply. The bill would require reserve Bitcoin to be held for at least 20 years, with limited disposal allowed only under specific conditions, including possible use to reduce federal debt. Begich told FOX Business that Bitcoin has emerged as the leading store-of-value asset within the crypto market, comparing its role in digital assets to gold’s role among precious metals. He said the Federal Reserve balance sheet should have flexibility as views on durable reserve assets change over time. The bill would classify Bitcoin as a “Tier 1” strategic reserve asset, according to descriptions of the measure. Other federally held digital assets would be placed in a separate stockpile rather than mixed with the Bitcoin reserve. Seized Bitcoin Would Move Into Federal Reserve Structure ARMA would also change how the federal government manages Bitcoin obtained through seizures. Instead of routine auctions or sales, seized Bitcoin would be transferred into the Strategic Bitcoin Reserve. Existing government Bitcoin holdings, described in bill materials as more than 328,000 BTC, would be consolidated under a single management structure. Rep. Pat Harrigan, R-N.C., one of the bill’s co-sponsors, said the government already holds billions of dollars in seized Bitcoin without a clear management plan. He said that approach should be replaced with a more organized reserve policy. The bill calls for stronger custody standards, including air-gapped storage, distributed private-key management, multi-signature approval and preparation for quantum-resistant cryptographic tools. It also includes quarterly proof-of-reserves reporting, third-party audits and congressional oversight. ARMA Adds Digital Asset Rules and Funding Plan The measure includes protections for Americans’ rights to own, transfer and self-custody digital assets. It also creates a separate federal stockpile for non-Bitcoin digital assets already held by the government. Funding for Bitcoin purchases would be required to remain budget neutral. One proposed method would revalue Federal Reserve gold certificates from the long-standing statutory price of $42.22 per ounce to current market levels. Supporters say that accounting change could create room for Bitcoin purchases without new taxpayer debt. The bill has bipartisan support and more than a dozen original co-sponsors, including Rep. Riley Moore, R-W.Va. Moore said America’s reserve assets should evolve with the global economy and described Bitcoin and other digital assets as part of future financial infrastructure. The proposal arrives as Congress continues work on broader crypto market legislation. The Senate Banking Committee recently advanced the Clarity Act with bipartisan support, sending the measure toward the Senate floor. Sen. Cynthia Lummis, R-Wyo., has said a vote could come by mid-June, though she described that timing as optimistic. If passed, ARMA would give the Strategic Bitcoin Reserve a permanent statutory basis, create federal custody and audit rules for Bitcoin holdings, and shift seized Bitcoin away from liquidation toward long-term reserve management.
