House Committee Advances Strategic Bitcoin Reserve Legislation

The American Reserve Modernization Act (ARMA) establishes a statutory framework for holding Bitcoin forfeited through legal proceedings. A central pillar of the legislation is a mandatory 20-year holding period for all deposited assets, during which the Treasury would be prohibited from selling, swapping, or encumbering the holdings. The bill requires the Treasury to publish annual proof-of-reserve reports, verified by independent third-party auditors, replacing earlier proposals for quarterly updates.

While the bill creates a structure for federal custody, it stops short of authorizing direct government Bitcoin purchases. Instead, the Treasury and Commerce departments are directed to conduct a 180-day study into budget-neutral acquisition methods that avoid deficit spending or new taxation. Additionally, the legislation provides a voluntary program for states to store their own Bitcoin in segregated Treasury accounts while maintaining legal title to their assets.

Rep. Nick Begich, the bill's sponsor, framed the measure as a necessary step to end the current fragmentation of federal digital asset management. Although the committee approved an amendment from Rep. Bryan Steil to refine reporting and oversight, the legislation still faces hurdles. It must clear the full House and the Senate before reaching the president's desk. For now, the bill remains a proposal, distinct from the existing reserve framework established by President Donald Trump’s March 2025 executive order.