U.S. ARMA creates Strategic Bitcoin Reserve: 5% target, 20-year hold

Published: 2026-05-22 14:14:37 |

U.S. lawmakers led by Rep. Nick Begich introduced the American Reserve Modernization Act (ARMA) to establish a Strategic Bitcoin Reserve managed by the Treasury. The bill targets holding 5% of total BTC supply and requires a minimum 20-year holding period. Any future sales would be allowed only under defined conditions, including using proceeds to reduce the national debt. The latest version also emphasizes a “budget-neutral” approach to expand the Strategic Bitcoin Reserve without deficit spending, including sourcing funds from seized Iranian crypto assets. The proposal builds on Senator Cynthia Lummis’ BITCOIN Act conceptually aimed at a 1 million BTC (about 5%) target. Key numbers remain central for traders: the U.S. currently holds about 328,372 BTC (around $25.5B), but roughly 94,000 BTC is expected to be returned to Bitfinex. Market pricing cited only ~34% odds that a formal Strategic Bitcoin Reserve framework is approved before 2027. Trading takeaway: this Strategic Bitcoin Reserve narrative is generally supportive for long-term sentiment, but near-term price impact looks likely to be muted until committees advance the text and timing toward a House vote becomes clearer. Keywords to watch: ARMA progress, Treasury buying rules, and the 20-year lock-up constraints for Bitcoin reserves.

Neutral

This is a long-term constructive headline because ARMA proposes a Treasury-managed Strategic Bitcoin Reserve with a 20-year minimum holding period, a clear 5% supply target, and a rules-based framework that is harder to unwind. That supports the “Bitcoin as a store of value” reserve narrative. However, near-term trading impact is likely neutral because the legislative path is uncertain (committee approval and a House floor vote are still required, with limited time before August recess). The market also appears to be pricing limited probability of formal approval before 2027 (~34%). Additionally, the expected return of ~94K BTC to Bitfinex could offset some immediate supply-demand optics. So, traders may see steady sentiment support, but price reaction likely depends on concrete procedural milestones rather than the concept alone.