ARMA Bitcoin Reserve Bill Targets 1M BTC, 20-Year Lock
The U.S. Congress has introduced the American Reserve Modernization Act of 2026 (ARMA), a proposal to formalize a Treasury-run Bitcoin reserve. The bill targets a reserve capacity of up to 1M BTC, with policy discussion referencing possible purchases around 200K BTC per year.
ARMA would move Bitcoin into centralized Treasury custody and set quarterly public proof-and-reserve reporting with independent audits and congressional oversight. A key clause requires the Bitcoin reserve to remain untouched for at least 20 years. Any allowed sales would be restricted to reducing U.S. national debt.
ARMA also builds on President Trump’s March 6, 2025 executive order that created a Strategic Bitcoin Reserve, transferred confiscated BTC into reserve custody, and barred open-market selling.
For traders, ARMA is a policy-driven bullish catalyst for BTC, but the impact may be gradual. Legislative timelines, oversight requirements, and the long holding/sale limits tied to the Bitcoin reserve structure can dampen near-term buying momentum.
Bullish
ARMA strengthens the “Bitcoin reserve/digital gold” narrative by moving the idea from executive action into a legislative framework with Treasury custody, quarterly transparency, and independent audits. That increases the probability of sustained, non-retail demand for BTC over time.
However, the bill’s design also limits near-term market impact: the reserve is expected to be locked for at least 20 years and sales are restricted to debt reduction. Combined with the legislative process and oversight requirements, the path to actual, large-scale purchases is likely slower than an immediate market buy.
Overall, traders should treat ARMA as a constructive medium-to-long-term catalyst for BTC, with upside bias but likely less “instant” volatility than a direct spot-buy announcement.