Discussions regarding Bitcoin policies in the USA moved to a new stage with the publication of the bill called American Reserve Modernization Act of 2026, shortly known as ARMA. The bill sets out a detailed legal framework for establishing a Strategic Bitcoin Reserve within the Ministry of Treasury.
Detailed framework for reserve
Unlike previous political statements and suggestions, the text contains concrete rules regarding Bitcoin purchasing, storage, reporting and auditing processes. The regulation defines Bitcoin as a reserve asset that can complement traditional national reserves.
Lawmakers say Bitcoin’s limited supply, widespread adoption and durability could play a role in strengthening U.S. financial security. The bill also distinguishes Bitcoin from other digital assets and proposes a separate strategic reserve for Bitcoin, while envisaging a separate Digital Asset Stock structure for assets other than Bitcoin.
The ARMA bill envisages the establishment of a Strategic Bitcoin Reserve within the Ministry of Treasury; It offers a detailed regulation that gathers procurement, storage, auditing and public reserve evidence notifications under the same roof.
According to the bill, the Secretary of the Treasury will be tasked with creating a secure and decentralized network of Bitcoin storage facilities across the United States. This structure will create the Strategic Bitcoin Reserve, where the Bitcoins held by the state are kept by cold wallet methods. While the Treasury is planned to carry out surveillance, inspection and security operations, it is also envisaged to consult with the Ministry of Defense, the Ministry of Internal Security and sector experts for security measures.
Mini dictionary: Cold wallet refers to a storage method that is not constantly connected to the internet. This approach is frequently used in enterprise storage to reduce the risk of cyberattacks by keeping private keys offline.
20 year retention requirement
One of the striking provisions in the bill is that it requires that reserved Bitcoins be held for at least 20 years. During this period, it will not be possible to sell, auction, exchange or otherwise dispose of the assets in question.
With two years left until the holding period expires, the Secretary of the Treasury will need to submit recommendations to Congress on how assets in the reserve will be managed in the future. Thus, it is aimed to include the legislature in the next stage of the long-term retention approach.
1 million BTC target in five years
The bill also envisions the establishment of a Bitcoin Purchase Program. Accordingly, the Treasury will be authorized to purchase 200,000 BTC annually for five years. The declared goal of the program is to acquire a total of 1 million BTC through structured purchases aimed at limiting the impact on the market.
The text also allows the acquisition of additional Bitcoin through confiscation, inter-institutional transfer, donation and other legal means. It is planned that all Bitcoins obtained through these channels will be transferred to the Strategic Bitcoin Reserve and will be subject to the same storage and retention rules.
Audit, transparency and structure open to states
On the financing side, some mechanisms based on the revaluation of Federal Reserve resources and gold certificates are listed. The bill amends federal law, opening the door for Bitcoin assets to be held in the Exchange Stabilization Fund, while introducing additional reporting obligations for relevant transactions and balances.
In addition, it is required to publish a proof of reserves report every quarter, conduct third-party cryptographic audits and implement Congressional oversight. Federal institutions are also asked to transfer their Bitcoins to reserves instead of selling them. The bill also includes a voluntary program that would allow US states to store their Bitcoin assets in segregated reserve accounts, preserving ownership rights. The text also clearly states that the federal government cannot seize or impair the legally acquired Bitcoin assets of individuals and organizations.
