Congressman Nick Begich has put forth legislation in U.S. Congress to create a national framework for a Bitcoin reserve to be administered by the U.S. Treasury under legislation known as the American Reserves Modernization Act of 2026, (ARMA).
The ARMA is a rebranded version of earlier proposed legislation (and more commonly referred to as the BITCOIN Act (Bitcoin Strategic Reserve Act) developed and proposed by Nick Begich.
The intent behind the change in name was to create a policy framing that is less crypto-specific in nature (as previous versions had been), and instead to broaden the envisaged objectives into a generalised “reserve modernisation” both within and outside of cryptocurrencies/crypto-assets.
The ARMA is co-sponsored by Cindy Lummis and connected to previous efforts to create a formalised U.S. Strategic Bitcoin Reserve that was included in Executive Order 2025 that established federal reserve structures for digital assets.
Core Provisions of ARMA
The bill authorizes the U.S. Treasury to purchase and/or hold Bitcoin as a strategic reserve asset. The reserves will be structured similar to other federal asset frameworks, and the Bitcoin strategic reserve will also be administered and managed by U.S. Treasury.
According to the committee reports on the ARMA, earlier proposed versions of the ARMA included the potential acquisition of up to 200,000 BTC over 5 years (total acquisition of BTC could be up to 1 million BTC, depending on final text of legislation).
Bitcoin Holding and Usage Rules per ARMA
The ARMA also includes provisions for the long-term holding of BTC. According to legislative summaries, Bitcoin placed into the reserve would generally be held for a minimum of 20 years.
It may be used earlier only under specific conditions, including scenarios related to reducing federal debt, as described in the bill’s draft language reported in coverage of the proposal.
Relationship to Earlier Crypto Policy
The ARMA proposal represents a continuation of an executive order established in 2025 that gives the federal government authority to create a Strategic Bitcoin Reserve, which would primarily be funded from an accumulation of Bitcoin that has been seized from crime and civil forfeiture actions. This order directed that agencies should combine their holdings of Bitcoin and other forms of digital currency and to hold them in an aggregated fashion, rather than selling them.
The ARMA proposal is viewed as an effort to codify the Strategic Bitcoin Reserve into law, and to expand it to a structured acquisition program beyond just the acquisition of seized property.
Policy Scope and Related Provisions
In addition to establishing a legislative framework for a Strategic Bitcoin Reserve, publicly available summaries of the ARMA bill also include several other considerations, such as:
– Defining Bitcoin as a strategic reserve asset, and the same way gold is defined;
– Creating administrative rules within the Treasury for the safe custody and auditing of digital currencies; and
– Providing for coordination of the Strategic Bitcoin Reserve with any digital asset stocking programs that may be established for assets besides Bitcoin.
ARMA Legislative Status
The ARMA bill currently has been introduced to the U.S. House of Representatives and is undergoing the committee review process. As of this time, it has not been passed into law, and further changes are anticipated as it proceeds through the legislative process.
At the moment, U.S. legislators are also actively exploring the general crypto and stablecoin-related bills such as CLARITY Act and GENIUS Act.
