TLDR:
- ARMA would create a Treasury-managed Strategic Bitcoin Reserve with nationwide cold storage facilities.
- The bill authorizes purchases of 200,000 BTC yearly, targeting 1 million Bitcoin over five years.
- All reserve Bitcoin would face a mandatory 20-year holding period before any potential release.
- Quarterly proof-of-reserve reports and independent audits would increase public transparency.
The publication of the American Reserve Modernization Act of 2026 (ARMA) marks a new stage in U.S. Bitcoin policy discussions.
The bill introduces detailed legislative language for creating a Strategic Bitcoin Reserve within the Treasury Department.
Unlike previous proposals and political statements, the measure establishes specific rules governing Bitcoin acquisition, custody, reporting, and oversight.
The legislation frames Bitcoin as a reserve asset with characteristics that could complement traditional national reserves.
Lawmakers state that Bitcoin’s scarcity, adoption, and resilience support its potential role in strengthening U.S. financial security.
The bill also distinguishes Bitcoin from other digital assets by proposing a separate Strategic Bitcoin Reserve alongside a Digital Asset Stockpile for non-Bitcoin holdings.
The proposal further introduces reporting requirements, independent audits, and public proof-of-reserve disclosures.
These provisions seek to provide transparency regarding government-controlled digital assets and their management.
Treasury Reserve Structure Includes Long-Term Holding Rules
The bill directs the Treasury Secretary to establish a decentralized network of secure Bitcoin storage facilities across the United States.
These facilities would collectively form the Strategic Bitcoin Reserve and store government Bitcoin holdings using cold-storage methods.
Under the proposal, the Treasury would oversee monitoring, auditing, and security operations. The legislation also requires consultation with the Departments of Defense and Homeland Security, alongside industry experts, to develop security measures for reserve holdings.
A notable provision requires Bitcoin acquired by the reserve to remain untouched for at least 20 years. During that period, the assets could not be sold, auctioned, swapped, or otherwise disposed of.
Two years before the holding period expires, the Treasury Secretary would submit recommendations to Congress regarding future management of reserve holdings.
Bitcoin Purchase Program Targets One Million BTC Acquisition
The legislation establishes a Bitcoin Purchase Program that would authorize Treasury purchases of 200,000 BTC annually over five years.
The program’s stated objective is the acquisition of one million Bitcoin through structured purchases designed to limit market disruption.
The bill also permits additional Bitcoin acquisitions through forfeitures, agency transfers, gifts, and other lawful means.
Any Bitcoin obtained through those channels would be transferred to the Strategic Bitcoin Reserve and remain subject to the same custody and holding requirements.
To fund the initiative, the proposal outlines several mechanisms involving Federal Reserve resources and the revaluation of gold certificates.
The legislation also amends federal law to allow Bitcoin holdings within the Exchange Stabilization Fund while requiring additional reporting on related transactions and balances.
The measure further mandates quarterly proof-of-reserve reports, third-party cryptographic audits, and congressional oversight.
Federal agencies holding Bitcoin would be required to transfer those assets into the reserve rather than selling them.
The bill also establishes a voluntary program allowing U.S. states to store their Bitcoin holdings in segregated reserve accounts while retaining ownership rights.
Additionally, the legislation affirms private property rights by stating that the federal government may not seize or impair lawfully acquired Bitcoin holdings belonging to individuals or organizations.
If enacted, the proposal would create a formal framework governing the acquisition, custody, reporting, and long-term management of federal Bitcoin reserves.
