US ARMA bill sets Treasury BTC reserve: 20-year lock to 1M BTC
The US is advancing the American Reserve Modernization Act (ARMA) to create a Treasury-run Strategic Bitcoin Reserve, targeting 1,000,000 BTC over the coming years.
ARMA would let the Treasury buy up to 200,000 BTC per year for five years, with the goal of reaching 1M BTC while limiting market disruption. The most market-relevant rule is the 20-year holding requirement: Bitcoin acquired for the BTC reserve must be essentially non-disposable during the lock period, with near-total restrictions on selling, auctions, exchanging, or other disposal.
The bill also defines custody and governance. It requires quarterly proof-of-reserve reporting, third-party cryptographic audits, independent oversight, and Congressional oversight, with custody handled via cold-wallet arrangements across secure facilities and input from defense and homeland security.
Additional framing for markets: the proposal separates Bitcoin from other crypto assets, supports a voluntary state-level segregated holding program, and includes protections against the federal government seizing legally acquired private Bitcoin.
For traders, this US BTC reserve plan is sentiment-supportive and can reduce prospective supply over time. However, the impact may be gradual because purchases are scheduled annually and the 20-year lock concentrates effects on long-term supply rather than immediate sell pressure.
Bullish
This news is bullish for BTC because it formalizes a US-backed accumulation plan and hardens supply over time. The Treasury’s ability to buy up to 200,000 BTC per year for five years, plus the near-total 20-year disposal restrictions, can structurally reduce circulating/available supply versus a world where coins could be sold.
Short term, the market may still react gradually: purchases are paced annually and the bill’s legislative and implementation timeline can delay immediate flows. The 20-year lock also reduces the likelihood of quick Treasury selling, which typically supports sentiment and can dampen near-term downside catalysts.
Long term, if the ARMA passes and the Treasury reaches the 1,000,000 BTC target, the combined effect of persistent accumulation and long-duration non-disposal rules could increase BTC’s scarcity narrative and improve expectations for reduced future sell pressure.