In a landmark development for cryptocurrency governance, U.S. lawmakers have advanced a significant piece of legislation that seeks to convert a previous executive order into permanent law. On September 16, 2026, the House Financial Services Committee voted 28-21 in favor of the American Reserve Modernization Act (ARMA), a bill designed to create a Strategic Bitcoin Reserve within the Department of the Treasury.
Introduced by Representative Nicholas Begich in May, the bill aims to lock up federally held Bitcoin for a minimum of 20 years, demonstrating a long-term commitment by the government to hold this digital asset. Currently, the U.S. government possesses approximately 324,527 Bitcoin, which is valued at around $24.7 billion, according to Arkham Intelligence.
Understanding the Bill
The legislation not only establishes a dedicated Bitcoin reserve but also proposes the creation of a Digital Asset Stockpile to manage digital assets acquired through criminal or civil forfeitures. This move signals a shift in the government’s approach to cryptocurrency, transitioning from a reactive to a proactive stance in asset management.
Under ARMA, the government’s Bitcoin holdings cannot be liquidated for at least two decades, ensuring that these assets are preserved for future use. Additionally, the bill mandates that all federal agencies disclose their digital asset holdings, thereby enhancing transparency through quarterly proof-of-reserve reports and third-party audits.
One notable aspect of the bill is its provision allowing individual states to store their Bitcoin with the Federal Reserve, thereby expanding the scope of the reserve beyond federal holdings. It also emphasizes the importance of financial sovereignty, affirming citizens’ rights to control their private keys and Bitcoin.
Mixed Reactions
The response to the legislation has been mixed. Proponents, such as Representative Bryan Steil, argue that the bill strengthens the nation’s reserves and could help mitigate the federal deficit. Steil highlighted the necessity for the U.S. to modernize its financial reserves to maintain competitiveness in the global arena.
Conversely, opposition has emerged from within the ranks. Representative Bill Foster expressed concerns about the inherent volatility and risk associated with Bitcoin, questioning its viability as a sound government investment. “I don’t think anyone believes that Bitcoin is critical to the U.S. economy,” Foster remarked during committee discussions.
It’s worth noting that the roots of this legislation extend back to earlier efforts. The bill’s predecessors, introduced by Begich and Senator Cynthia Lummis as the BITCOIN Act, laid the groundwork for the current proposal, which seeks to formalize the handling of Bitcoin by the U.S. government.
What Lies Ahead
The origins of the proposal trace back to an executive order issued by President Donald Trump in 2025, which established the reserve utilizing Bitcoin acquired through forfeitures. The order also tasked the Treasury and Commerce departments with identifying budget-neutral methods to expand the reserve.
Despite the committee’s approval, the bill must still clear the full House and Senate before it can reach the president’s desk for signing. As the legislative process unfolds, questions surrounding the legality of Treasury’s management of the reserve continue to surface, underscoring the complex interplay between government policy and cryptocurrency regulation.
