A new bipartisan bill in Washington aims to turn the US government into a long-term Bitcoin holder, mandating a 20-year lockup for its more than $25 billion in crypto assets.
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US Lawmakers Propose 20-Year Bitcoin Hold in Bill to Secure $25 Billion Stash
A group of 17 US lawmakers introduced the American Reserve Modernization Act on Thursday, proposing to codify a strategic Bitcoin reserve and require the Treasury to hold all federally-owned BTC for at least two decades unless sold to reduce the national debt.
"The US is already one of the largest holders of Bitcoin in the world. But Congress has never set a federal policy on what to do with that asset,” Representative Jared Golden, a Democratic co-sponsor of the bill, said in a statement.
The bill, known as ARMA, would consolidate the government's current holdings of 328,372 BTC, valued at over $25.5 billion, which were primarily acquired through criminal forfeitures from cases like the Silk Road and Bitfinex hacks. It also authorizes the Treasury to acquire up to 1 million Bitcoin over five years through budget-neutral strategies, building on President Donald Trump's March 2025 executive order that first established the reserve concept.
If passed, the legislation would represent a significant policy shift, moving the government from periodically auctioning its seized crypto to establishing a long-term strategic financial buffer. The bill now heads to committee hearings, which will determine its path forward ahead of the midterm elections.
From Executive Order to Statute
The ARMA bill, introduced by Alaska Republican Nick Begich, aims to give statutory weight to the strategic reserve initiative, which currently exists only by an executive order that a future administration could rescind. “This bill is aimed at providing the flexibility needed to broaden America’s portfolio of reserve assets... while also safeguarding crypto from the whims of Congress or future administrations,” Begich said in a post on X.
The legislation also includes provisions designed to appeal to the broader crypto industry, including a mandate for quarterly “Proof of Reserve” reports, independent third-party audits, and an affirmation of self-custody rights for individuals.
Industry leaders have voiced strong support. Matt Cole, CEO of Bitcoin treasury firm Strive, called the proposal “the single most important crypto legislation that can come out of D.C.” for the long-term security of the United States. The Bitcoin Policy Institute also endorsed the package, framing it as a key step toward professionalizing federal custody standards.
Political Headwinds Remain
Despite the bipartisan sponsorship, the concept of a strategic Bitcoin reserve faces criticism. Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee, has previously questioned the initiative, warning that crypto has no inherent value and that such reserves could primarily benefit insiders.
The bill’s introduction highlights a growing divergence in how global regulators are approaching digital assets. While the US considers a long-term holding strategy, other jurisdictions are focused on implementing comprehensive frameworks like Europe's Markets in Crypto-Assets (MiCA) regulation, which prioritizes consumer protection and market integrity. The progress of ARMA will be a key indicator of whether the US intends to compete by accumulating assets or by setting regulatory standards.
This article is for informational purposes only and does not constitute investment advice.
