US Lawmakers Push Strategic Bitcoin Reserve Bill, ARMA Gains Traction

U.S. lawmakers are renewing efforts to establish a federal Bitcoin reserve with the introduction of the American Reserve Modernization Act (ARMA) on May 21, 2026. The bill, sponsored by Rep. Nick Begich (R-AK) and co-signed by 16 bipartisan members of Congress, aims to institutionalize a Strategic Bitcoin Reserve managed by the U.S. Treasury. If passed, it would allow the federal government to acquire up to 1 million Bitcoin (BTC) over five years using budget-neutral strategies.

The ARMA proposal builds on the BITCOIN Act of 2024, which laid the groundwork for U.S. Bitcoin acquisition but lacked comprehensive implementation. ARMA seeks to strengthen federal policy by mandating that Bitcoin holdings be retained for at least 20 years, except in cases where they are sold to reduce national debt, which now exceeds $39 trillion.

The U.S. currently holds approximately 328,372 BTC—worth $25.5 billion at Bitcoin’s current price of $77,674—making it the largest state-held Bitcoin reserve globally. However, past sales of these assets, often tied to court-ordered liquidations, have sparked debate over the lack of a formalized strategy. “The U.S. is already one of the largest holders of Bitcoin in the world, but Congress has never set a federal policy on what to do with that asset,” said Rep. Jared Golden, a co-sponsor of the bill.

Strategic Implications

Advocates of ARMA argue that formalizing a Bitcoin reserve could solidify the U.S.’s position in the rapidly growing digital asset economy. Rep. Mike Carey noted that the bill is designed to ensure America remains competitive globally as digital assets become increasingly integral to financial systems. The legislation also includes safeguards, such as quarterly proof-of-reserve reports and third-party audits, to enhance transparency and trust in the reserve’s management.

Additionally, ARMA seeks to affirm digital property rights, explicitly protecting individuals’ ability to own and self-custody Bitcoin and other crypto assets—key principles for fostering innovation in the industry.

Market and Policy Context

Bitcoin’s market cap stands at $1.53 trillion as of May 22, 2026, with the asset trading at $77,674, down 0.34% in the last 24 hours. The ARMA bill comes as the White House signals readiness to operationalize the Strategic Bitcoin Reserve, having resolved earlier legal and custody barriers. Patrick Witt, Executive Director of the White House Digital Assets Office, referred to ARMA as a critical “Version 2” of the earlier BITCOIN Act, emphasizing its robust legal framework.

The proposed acquisition of 1 million BTC—roughly 4.6% of Bitcoin’s current circulating supply—could have significant market implications if implemented. While ARMA pledges a budget-neutral approach, any large-scale government purchases could impact liquidity and pricing in the notoriously volatile crypto markets.

Industry leaders are closely watching ARMA’s progress. Matt Cole, CEO of Strive Capital, hailed it as “the single most important crypto legislation” to emerge from Washington, underscoring its potential to shape global crypto policy.

Next Steps

The ARMA bill now faces committee review and potential amendments before advancing to a vote in Congress. With bipartisan backing and support from both legislative chambers, the bill appears poised for serious consideration. Meanwhile, traders will likely monitor any developments closely, given the potential market-moving implications of a formalized U.S. Bitcoin reserve strategy.

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