U.S. lawmakers have renewed a push to establish a strategic Bitcoin reserve through the American Reserve Modernization Act (ARMA) of 2026, a proposal that would mandate a long-term holding period for any Bitcoin acquired for federal reserves. The measure calls for a minimum 20-year hold, with an exception allowing sales strictly to reduce the national debt.
Key provisions of the ARMA proposal
- 20-year holding period: Bitcoin acquired under the act would be held for at least two decades.
- Debt-reduction exception: The only permitted early disposition would be to liquidate holdings for the purpose of lowering the national debt.
- Strategic reserve framework: The bill seeks to formalize Bitcoin’s role within the United States’ reserve management alongside traditional assets.
Why the holding rule matters
Governments typically maintain reserves in assets such as gold and foreign exchange to bolster financial stability and policy flexibility. A mandated holding period for Bitcoin is intended to discourage short-term trading by the federal government and frame the asset as a long-term reserve component. The debt-reduction exception ties any sale of reserves to a specific fiscal outcome rather than market timing.
Next steps and open questions
The proposal would need to advance through committee review, pass both chambers of Congress, and be signed by the president before becoming law. Key implementation details—such as acquisition methods, custody standards, oversight mechanisms, and the scale of potential purchases—have not been disclosed. The timeline for consideration remains uncertain.