US Lawmakers Propose Strategic Bitcoin Reserve Bill With 1 Million BTC Plan

U.S. lawmakers are once again moving to put a 'Strategic Bitcoin Reserve' into federal law, reviving a debate that could reshape how Washington treats Bitcoin (BTC)—from seized asset to long-term sovereign reserve.

Rep. Nick Begich introduced the American Reserve Modernization Act of 2026 (ARMA) on May 22 ET, proposing the creation of a Treasury-managed Strategic Bitcoin Reserve alongside a broader 'Digital Asset Stockpile' for other digital assets held by the federal government. The bill was co-sponsored by 16 House members and is modeled on the earlier BITCOIN Act, first introduced in July 2024 and later updated in March 2025.

ARMA’s central proposal is ambitious: acquire up to 1 million BTC over five years using 'budget-neutral strategies'—a structure designed to avoid direct taxpayer funding. While the bill’s text, as described by its sponsors, emphasizes fiscal neutrality, the concept is likely to face scrutiny in Congress over what mechanisms would qualify as non-budgetary in practice, and how purchases would be executed without distorting markets.

The White House has signaled that it views ARMA as a more mature iteration of earlier proposals. In a Sunday interview, Patrick Witt, a member of the President’s Digital Asset Advisory Committee, called ARMA “version 2” of the BITCOIN Act, saying the administration has spent significant time examining the legal implications of establishing a federal Bitcoin reserve. Witt described the bill as a breakthrough that “puts all the pieces in place,” with a focus on legal durability and safeguarding the assets.

The renewed push is especially notable because the U.S. already ranks as the world’s largest known sovereign holder of Bitcoin. According to figures cited in connection with the bill, the federal government holds 328,372 BTC—worth more than $25.5 billion at current market prices—largely accumulated through seizures and forfeitures. However, portions of those holdings have historically been sold off under court orders, underscoring a key argument from proponents: the U.S. has amassed a strategically significant position without a consistent federal policy governing retention, liquidation, or long-term reserve management.

Rep. Jared Golden, one of the co-sponsors, framed the proposal in exactly those terms, arguing that despite the scale of federal holdings, Congress has never set a national-level policy for how the U.S. should manage Bitcoin on its balance sheet.

ARMA also introduces a strict holding mandate. Bitcoin acquired under the program would be required to remain in federal custody for at least 20 years, with only one exception: sales would be permitted solely to reduce the national debt. The timing of that provision is politically resonant. U.S. national debt surpassed $39 trillion as of Wednesday, placing fiscal sustainability back at the center of many policy discussions in Washington.

Supporters say the bill is intended to strengthen U.S. competitiveness as digital assets become more integrated into global financial infrastructure. Rep. Mike Carey argued that as digital assets grow in importance, the measure could bolster America’s long-term economic standing and help it remain competitive internationally. Outside government, Matt Cole, CEO and chairman of Strive, called ARMA “the most important single digital asset bill” that could come out of Washington, reflecting a broader industry view that reserve policy—more than incremental regulatory refinement—could have outsized signaling effects on global markets.

Beyond acquisition and custody, ARMA emphasizes transparency and property-rights protections—two areas that have become flashpoints in international crypto policy debates. The bill would require quarterly 'proof of reserve' disclosures for the Bitcoin reserve and mandate independent third-party audits. Just as significant, it explicitly states that the federal government may not infringe on individuals’ digital asset ownership or 'self-custody' rights, a provision that may resonate as policymakers worldwide weigh identity frameworks, surveillance concerns, and the future role of central bank digital currencies.

For global markets, the stakes extend well beyond the U.S. balance sheet. If Congress ultimately enacts a statutory framework that treats Bitcoin as a long-duration strategic reserve asset—paired with strict governance, audit requirements, and explicit self-custody protections—it could accelerate a broader re-rating of Bitcoin’s role in sovereign portfolios and institutional risk frameworks. At the same time, the scale implied by a five-year path toward 1 million BTC ensures the proposal will draw intense debate over execution, market impact, and whether 'budget-neutral' approaches can credibly deliver such accumulation without indirect fiscal costs.

ARMA’s introduction reinforces a clear direction of travel in Washington: the center of gravity is shifting from how to police crypto markets toward how the U.S. itself may hold and manage crypto as a strategic asset. Whether that shift becomes law will depend on congressional negotiations ahead, but the policy signal is already being watched closely across the global digital asset sector.