A bipartisan group of U.S. lawmakers, led by Representative Nick Begich, has introduced the American Reserve Modernization Act (ARMA) to establish a strategic Bitcoin reserve for the United States. The bill aims to hold approximately 5% of the total Bitcoin supply as part of the nation’s reserve assets, diversifying beyond traditional holdings like gold.
Begich emphasized the growing recognition of Bitcoin as a dominant asset within the cryptocurrency market, akin to gold’s status among precious metals. According to him, Bitcoin currently accounts for around 60% of the total crypto market capitalization, reflecting its emerging role as a potential store of value. Pat Harrigan, another bill co-sponsor, pointed out that gold reserves have historically underpinned U.S. financial security, and a Bitcoin reserve could provide similar stability for future generations.
The legislation outlines that the U.S. Treasury would oversee the Bitcoin reserve, which would be required to maintain holdings for a minimum of 20 years. Any Bitcoin sales during or after this period would be funneled to reduce the national debt. To fund the reserve without increasing the federal deficit, Begich proposed utilizing seized crypto assets from entities such as Iran, alongside other budget-neutral methods.
This initiative builds upon the earlier BITCOIN Act, introduced by Senator Cynthia Lummis, which recommended the U.S. hold one million Bitcoin, roughly 5% of the total supply. The proposal has drawn praise from crypto industry observers, including Tom Lee of FundStrat, who compared it to his ‘Alchemy of 5%’ concept for Ethereum. Conner Brown, managing director at Bitcoin Policy Institute, described the bipartisan backing as a significant positive development for Bitcoin’s mainstream acceptance.
Currently, the U.S. government reportedly holds over 328,000 Bitcoin, valued at approximately $25.5 billion, which could serve as the foundational reserve. However, a portion of these holdings—about 94,000 Bitcoin—are earmarked to be returned to the Bitfinex exchange, complicating the stockpile’s availability for this purpose.
The bill faces an uphill battle procedurally, with limited time remaining before Congress’s scheduled recess and midterm elections. It must pass committee review and secure majority approval on the House floor to advance. Market sentiment reflects cautious optimism, with odds estimated at roughly one in three that such a Bitcoin reserve will be formally adopted before 2027. Despite momentum within crypto circles, the legislation's future remains uncertain.