A bipartisan group of 16 US lawmakers just introduced legislation that would direct the Treasury Department to accumulate up to 1 million Bitcoin over five years and hold it as a national reserve asset for at least two decades.
The American Reserve Modernization Act of 2026, known as ARMA, was formally introduced on May 21 by Representative Nick Begich of Alaska and co-lead Representative Jared Golden of Maine. If passed, it would be the first time in history that Congress has enacted a deliberate federal policy to acquire and hold Bitcoin as a strategic store of value.
One million Bitcoin represents roughly 5% of the total supply that will ever exist. At current prices near $76,000, that stack would be worth approximately $76 billion. If Bitcoin reaches the $150,000 level that Standard Chartered and other institutions are targeting, it would be worth $150 billion.
The bill has immediate backing from more than a dozen co-sponsors from both parties. It builds on President Trump’s March 2025 executive order establishing a Strategic Bitcoin Reserve and extends the provisions of the BITCOIN Act originally introduced by Senator Cynthia Lummis in 2024.
How the Government Would Pay for It
The most common reaction to a proposal like this is obvious: where does the money come from? The answer is one of the more creative aspects of the bill.
ARMA is designed to be budget-neutral, meaning it wouldn’t add to the national debt or require new taxpayer funding. The primary financing mechanism involves revaluing the Federal Reserve’s gold certificate price from its current statutory level of $42.22 per ounce to something closer to gold’s actual market price of approximately $5,000 per ounce.
That gap between the official book value and the real market value of America’s gold reserves creates an enormous amount of paper value that currently sits unused. By marking the gold to market, the Treasury could unlock hundreds of billions in accounting gains that would then be used to purchase Bitcoin.
The bill also lists several additional acquisition methods, including converting non-Bitcoin digital assets already held by the government, using proceeds from criminal forfeiture cases, allocating tariff revenues, and forming partnerships with state governments that are pursuing their own Bitcoin reserve strategies.
Importantly, the Treasury would be authorized to buy up to 200,000 BTC per year over five years to reach the 1 million target. That rate of accumulation would exceed the combined annual output of all Bitcoin miners, which currently produce roughly 164,000 new BTC per year. If the government became a buyer at that scale, the supply-demand impact on Bitcoin’s price would be significant.
The 20-Year Lockup and Self-Custody Clause
Two provisions in the bill stand out for their ambition and their implications.
First, the 20-year mandatory holding period. Once Bitcoin enters the Strategic Reserve, it cannot be “sold, swapped, auctioned, encumbered, pledged, or otherwise disposed of” for at least 20 years. The only exception is if Congress authorizes a sale specifically to reduce the national debt, which currently exceeds $39 trillion.
That lockup transforms Bitcoin from a speculative asset on the government’s balance sheet into something closer to gold: a long-term store of value held for strategic purposes rather than trading profits. It also removes the political risk of a future administration liquidating the reserve for short-term budget purposes.
Second, the self-custody protection clause. The bill explicitly prohibits the federal government from impairing individuals’ right to personally own and possess their Bitcoin. In practical terms, this means the government can build its own reserve without threatening citizens’ ability to hold their own.
That clause addresses one of the crypto community’s biggest fears: that a government Bitcoin reserve could eventually be used to justify restricting private ownership, similar to how gold ownership was banned for US citizens between 1933 and 1974. ARMA draws a clear line between public reserve accumulation and private property rights.
How ARMA Differs From Previous Bitcoin Reserve Proposals
This isn’t the first attempt to establish a federal Bitcoin reserve. Senator Cynthia Lummis introduced the BITCOIN Act in July 2024 and updated it in March 2025. Trump signed an executive order establishing a Strategic Bitcoin Reserve in March 2025. Several states have pursued their own reserve legislation.
ARMA builds on all of those efforts but refines the legal structure in important ways. According to Patrick Witt from the President’s Council of Advisors for Digital Assets, ARMA represents a more polished and legally defensible version of earlier proposals.
One key difference is flexibility. While the BITCOIN Act proposed a rigid mandate to acquire exactly 1 million BTC, The Block reports that ARMA’s actual bill text directs the Treasury and Commerce Departments to study whether additional acquisitions can be made through budget-neutral mechanisms rather than mandating a fixed target. The 1 million figure appears in the proposal as an aspirational goal rather than a binding requirement.
The bill also creates a separate Digital Asset Stockpile for non-Bitcoin cryptocurrencies already held by the federal government. Assets seized through criminal investigations and civil forfeitures would be deposited into this stockpile and managed by the Treasury alongside the Bitcoin reserve. This acknowledges that the government already holds significant amounts of various digital assets and needs a formal framework for managing them.
The Political Landscape
ARMA’s bipartisan sponsorship is significant. Having both Republican and Democratic lawmakers as co-leads gives the bill a better chance of surviving the committee process and reaching a floor vote. The 16 original co-sponsors represent a broad coalition, which is worth noting in today’s divided Congress.
The bill also arrives at a moment when the broader regulatory environment is more favorable to crypto than at any previous point in US history. The GENIUS Act established a federal stablecoin framework. The CLARITY Act cleared the Senate Banking Committee. Kevin Warsh, who holds over $100 million in personal crypto investments, is now Fed Chair. Trump’s executive order directed regulators to open payment systems to crypto firms.
ARMA fits neatly into that momentum. It takes the executive branch’s existing Bitcoin reserve strategy and gives it the force of law, making it harder for future administrations to reverse.
That said, the bill faces real obstacles. Congressional leadership hasn’t committed to a timeline for a floor vote. The appropriations process could complicate the gold revaluation mechanism. And some lawmakers remain skeptical about the federal government holding any cryptocurrency, viewing it as too volatile and too speculative for a national reserve asset.
Representative Begich framed the urgency clearly. He said America’s balance sheet is a critical component of the nation’s insurance policy, bolstering the currency and providing assurance during times of uncertainty. His argument is that Bitcoin, like gold before it, should be part of that insurance policy.
What 1 Million BTC Would Mean for Bitcoin’s Price
The market implications of the US government becoming a buyer of 200,000 Bitcoin per year are hard to overstate.
Current daily mining output produces roughly 450 new BTC. Annualized, that’s approximately 164,000 BTC. If the Treasury were authorized to buy 200,000 BTC per year, government demand alone would exceed the entire annual new supply of Bitcoin.
Add existing ETF inflows, which have been running at hundreds of millions per week, corporate treasury purchases from companies like Strategy and SpaceX, and growing retail demand, and the supply-demand imbalance becomes extreme. There simply wouldn’t be enough Bitcoin available at current prices to satisfy that level of demand.
Standard Chartered’s $150,000 target, Tom Lee’s $250,000 forecast, and even more aggressive long-term projections would all become more plausible if ARMA passes. The bill would essentially create a permanent, large-scale buyer that absorbs supply for 20 years without selling.
The bill’s passage is far from certain. But the fact that 16 lawmakers from both parties are willing to put their names on legislation directing the Treasury to buy 1 million Bitcoin tells you something about how far the Overton window has shifted. Five years ago, this proposal would have been dismissed as satire. Today, it has co-sponsors, a financing mechanism, and a political tailwind.
FAQ
What is the ARMA Bill?
The American Reserve Modernization Act of 2026 is a bipartisan bill introduced by 16 US lawmakers that would establish a Strategic Bitcoin Reserve within the Treasury Department. It authorizes the purchase of up to 200,000 BTC per year over five years, targeting a total of 1 million BTC, with a mandatory 20-year holding period. The bill is designed to be budget-neutral, funded primarily by revaluing the Federal Reserve’s gold certificates to market prices.
How would the government pay for 1 million Bitcoin?
The primary mechanism is revaluing the Fed’s gold certificate price from $42.22 per ounce to approximately $5,000 per ounce, unlocking hundreds of billions in accounting gains. Additional funding sources include criminal forfeiture proceeds, conversion of non-Bitcoin digital assets, tariff revenues, and state partnerships. No new taxpayer funding or national debt would be required.
Does the bill protect individuals’ right to own Bitcoin?
Yes. ARMA includes an explicit self-custody clause that prohibits the federal government from impairing individuals’ right to personally own and custody their Bitcoin. This addresses concerns that a government reserve could eventually lead to restrictions on private ownership.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making any investment decisions.
