A new bill in Congress aims to formalize the United States’ Bitcoin strategy by creating a federally managed reserve that could eventually hold up to 1 million BTC.
The bill, known as the American Reserve Modernization Act of 2026 (ARMA), was introduced last week by Republican Congressman Nick Begich and Democrat Jared Golden.
Notably, the bipartisan bill seeks to establish a national Bitcoin reserve under the management of the U.S. Treasury Department while also creating separate repositories for other digital assets held by the federal government.
Under the bill, federal agencies would be required to fully disclose and transfer any digital assets under their control into centralized government custody overseen by the Treasury Department. The legislation also calls for quarterly public reporting, independent audits, and congressional oversight to ensure transparency regarding the nation’s digital asset holdings.
One of the bill’s key provisions would require Bitcoin held in the reserve to remain untouched for at least 20 years. According to the proposal, any sale of reserve BTC would only be permitted if used specifically to reduce national debt obligations.
 
Begich emphasized the importance of protecting federal digital assets from political shifts.
“The American Reserve Modernization Act (ARMA) ensures digital assets in the possession of the federal government will be consolidated across government and protected as a reserve asset for future generations, protecting these assets from the whims of Congress or future administrations,” he tweeted.
The legislation also reinforces the rights of American citizens to own, store, and transfer digital assets without government interference.
Notably, ARMA builds upon momentum created by President Donald Trump’s executive order signed on March 6, 2025, which officially established the U.S. Strategic Bitcoin Reserve.
Trump’s directive ordered federal authorities to transfer Bitcoin confiscated through criminal and civil proceedings into a national reserve rather than liquidating the assets on the open market.
Trump’s order also prohibited the sale of Bitcoin stored in the reserve, framing the asset as a strategic long-term holding for the country.
Additionally, the administration created a separate vault for non-Bitcoin digital assets, though those tokens were restricted to assets seized by authorities rather than newly acquired purchases.
Furthermore, the latest ARMA proposal goes a step further by instructing the Treasury Department and the Commerce Department to explore “budget-neutral” strategies for purchasing additional Bitcoin without imposing additional burdens on taxpayers.
Although the bill itself does not explicitly mandate a one-million-BTC reserve target, that concept has remained central to broader discussions in Washington. Notably, the idea was previously championed through the BITCOIN Act introduced by Senator Cynthia Lummis, which proposed large-scale federal Bitcoin acquisitions over multiple years, including annual purchases of approximately 200,000 BTC.
The renewed push at the federal level also mirrors a rapidly expanding trend among U.S. states, which are racing to establish their own Bitcoin reserve strategies.
Texas recently became the first U.S. state to directly purchase Bitcoin, following legislative efforts reportedly begun in 2024.
Meanwhile, New Hampshire passed legislation authorizing the state treasurer to allocate up to 5% of public funds into crypto exchange-traded products and precious metals.
Other states, including Arizona, Massachusetts, Ohio, and South Dakota, are also considering similar reserve-related legislation at different stages of review.
The accelerating adoption of Bitcoin reserve frameworks by both state and federal policymakers reflects a growing belief among lawmakers that digital assets may eventually play a strategic role similar to gold reserves in the global financial system.
That said, the latest proposal also arrives shortly after Trump signed another executive order on May 19 aimed at integrating digital assets into the traditional banking and payments infrastructure while revising how crypto firms access financial services.
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