U.S. Lawmakers Float Plan to Build a 1 Million-Bitcoin Strategic Reserve Over Five Years
Rep. Nick Begich (R-Alaska) has introduced the American Reserve Modernization Act (ARMA), legislation that would put a proposed U.S. Strategic Bitcoin Reserve into federal law and authorize the Treasury Department to acquire up to 1 million bitcoin over five years.
ARMA builds on Begich's earlier proposal and would codify President Donald Trump's March 2025 executive order that created a Strategic Bitcoin Reserve and a separate U.S. Digital Asset Stockpile. Moving the initiative from an executive order to statute would make it harder for a future administration to unwind the policy without action from Congress.
The bill would permit Treasury to purchase as much as 200,000 BTC per year for five years, aiming for roughly 1 million BTC, or about 5% of bitcoin's fixed supply. It would require reserve bitcoin to be held for at least 20 years, allowing limited disposals only under specified conditions, including potential use to reduce federal debt.
Begich told FOX Business that bitcoin has become the leading store-of-value asset in crypto markets, likening its role among digital assets to gold's position among precious metals. He said the Federal Reserve balance sheet should retain flexibility as views on durable reserve assets evolve. The legislation would designate bitcoin as a "Tier 1" strategic reserve asset, while other federally held digital assets would be housed in a separate stockpile.
ARMA would also overhaul the handling of bitcoin acquired through seizures. Rather than routinely auctioning or selling it, seized bitcoin would be transferred into the Strategic Bitcoin Reserve. Existing government holdings—described in bill materials as more than 328,000 BTC—would be consolidated under a single management framework.
Rep. Pat Harrigan (R-N.C.), a cosponsor, said the government already holds billions of dollars in seized bitcoin without a clear management plan, arguing for a more structured reserve approach. The measure calls for tighter custody standards, including air-gapped storage, distributed private-key management, multisignature approvals and preparation for quantum-resistant cryptographic tools. It would also require quarterly proof-of-reserves reporting, third-party audits and congressional oversight.
The proposal includes protections for Americans' rights to own, transfer and self-custody digital assets, and formally establishes a separate federal stockpile for non-bitcoin digital assets already held by the government.
Funding for bitcoin purchases would have to remain budget neutral. One method outlined in the bill would revalue Federal Reserve gold certificates from the long-standing statutory price of $42.22 per ounce to current market levels. Supporters argue the accounting change could create capacity for bitcoin purchases without adding new taxpayer-funded debt.
ARMA is backed by more than a dozen original cosponsors, including Rep. Riley Moore (R-W.Va.). Moore said U.S. reserve assets should evolve with the global economy and described bitcoin and other digital assets as part of future financial infrastructure.
The bill lands as Congress continues work on broader crypto market legislation. The Senate Banking Committee recently advanced the Clarity Act with bipartisan support, sending it toward the Senate floor. Sen. Cynthia Lummis (R-Wyo.) said a vote could come by mid-June, though she characterized that timeline as optimistic.
If enacted, ARMA would give the Strategic Bitcoin Reserve a permanent statutory foundation, set federal custody and audit rules for bitcoin holdings, and shift seized bitcoin away from liquidation toward long-term reserve management.
