A bipartisan group of 16 U.S. lawmakers introduced the American Reserve Modernization Act of 2026 on May 21, proposing that the federal government acquire up to 1 million Bitcoin over five years and hold it as a formal strategic reserve asset with a mandatory 20-year minimum retention period. The bill, led by Representative Nick Begich of Alaska and co-led by Representative Jared Golden of Maine, represents the most detailed Congressional proposal to date for integrating Bitcoin into the federal government’s reserve asset framework and builds on earlier legislative efforts including the BITCOIN Act introduced by Senator Cynthia Lummis.

Acquisition Structure and Budget Neutrality

Under the proposed legislation, the U.S. Treasury would be authorized to purchase up to 200,000 Bitcoin per year over a five-year acquisition window, with a cumulative target of 1 million coins representing approximately 5 percent of Bitcoin’s total 21 million supply cap. The bill mandates that the reserve be established through budget-neutral acquisition strategies, requiring formal study into methods for expanding reserves without increasing taxes, adding to the deficit, or taking on new national debt obligations. Any future sale of the acquired Bitcoin would be permitted only for the purpose of reducing the national debt, which currently exceeds 39 trillion dollars.

The legislation establishes a Strategic Bitcoin Reserve housed within the Treasury Department, alongside a separate Digital Asset Stockpile designated for federally held non-Bitcoin digital assets. The bill mandates quarterly Proof of Reserve reports and independent third-party audits of all federal digital asset holdings, introducing a transparency framework that does not currently exist for traditional government reserve assets such as gold. ARMA also explicitly prohibits federal impairment of Americans’ lawful rights to own, transfer, or self-custody digital assets, addressing concerns among crypto advocates about potential future restrictions on individual ownership.

Legislative Context and Co-Sponsor Support

The ARMA Bill arrives in a Congressional environment increasingly receptive to digital asset legislation. Senators Bill Cassidy and Cynthia Lummis introduced separate Senate legislation in late March addressing strategic reserves and Bitcoin mining expansion, and at least two U.S. states have enacted strategic Bitcoin reserve laws in recent months. The House bill’s 16 original co-sponsors span multiple states and include Representatives Buddy Carter of Georgia, Barry Moore of Alabama, Burgess Owens of Utah, Mike Carey of Ohio, Mike Lawler of New York, and Abraham Hamadeh of Arizona, among others.

The bipartisan framing is notable given the polarized political landscape around cryptocurrency policy. While digital asset legislation has traditionally divided along party lines in some areas, the ARMA Bill draws support from both Republican and Democratic lawmakers, suggesting that the concept of a national Bitcoin reserve is gaining traction across the political spectrum. The bill’s introduction follows President Trump’s earlier executive order establishing a working group to study digital asset policy, though the ARMA Bill goes significantly further by proposing direct federal acquisition.

Market and Economic Implications

If enacted, the acquisition of 200,000 Bitcoin per year would represent a substantial source of sustained demand in a market where annual new issuance through mining currently sits below 200,000 coins following the April 2024 halving. At current prices near 77,000 dollars per coin, the full 1 million Bitcoin target would imply a total acquisition cost in the range of 77 billion dollars, though actual costs would depend heavily on execution timing and market conditions. Proponents argue that establishing Bitcoin as a strategic reserve asset would strengthen the dollar’s competitive position against other sovereign currencies and provide a non-correlated hedge against inflationary monetary policy.

Risks and Uncertainties

Despite bipartisan support in the House, Senate passage faces significant procedural hurdles, and the bill’s budget-neutrality mechanism remains undefined in practical terms. Critics have questioned whether any acquisition strategy of this scale can truly avoid increasing the deficit, particularly given the volatility of Bitcoin as an asset class. A sustained decline in Bitcoin’s price after acquisition could create political liability and complicate future Congressional support for the reserve. The 20-year holding mandate, while designed to prevent short-term political interference, also locks the government into a position that cannot be unwound even if market conditions or policy priorities change substantially. Skeptics in the traditional finance community have argued that sovereign Bitcoin reserves introduce concentration risk and could amplify market volatility if other nations follow suit with competing accumulation programs. The bill’s path through committee, floor votes, and potential reconciliation with Senate proposals remains uncertain.

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