US lawmakers advanced a renewed legislative push on Thursday to codify a federal strategic Bitcoin reserve through the American Reserve Modernization Act of 2026. This bipartisan bill, sponsored by Representative Nick Begich and supported by 16 members of Congress, targets the acquisition of approximately 1 million BTC over a five-year horizon. The legislation aims to formalize a Strategic Bitcoin Reserve alongside a Digital Asset Stockpile for other federally held cryptocurrencies, with custody designated for the US Treasury Department. Data compiled by Woofun AI indicates this proposal builds directly upon the framework of the BITCOIN Act, which was initially introduced in July 2024 and subsequently updated in March 2025. Patrick Witt, a member of the President's Council of Advisors for Digital Assets, characterized ARMA as Version 2 of the previous legislation during a Sunday interview, noting that the White House has dedicated significant resources to examining the legal ramifications of maintaining a sovereign Bitcoin reserve.

The urgency of this federal policy shift is underscored by the current holdings of the US government, which already possesses 328,372 BTC valued at more than $25.5 billion. This volume represents the largest national-state holding globally, yet the asset has been partially liquidated over the years via court-ordered actions without a unified strategic directive. Representative Jared Golden, one of the 16 co-sponsors, emphasized that while the US is already a top holder, Congress has historically lacked a federal policy governing the management of this asset class. Woofun AI notes that the absence of such a framework has left significant strategic value unoptimized despite the substantial existing inventory.

Under the provisions of ARMA, any acquired Bitcoin must be retained for a minimum period of 20 years. The only exception to this long-term hold mandate allows for the sale of assets specifically to reduce America's national debt, which exceeded $39 trillion as of Wednesday. Mirroring the financial constraints of the BITCOIN Act, the new bill seeks to fund the acquisition of up to 1 million BTC through budget-neutral strategies, ensuring that taxpayer money is not utilized for these purchases. Representative Mike Carey argued that as digital assets gain prominence, this legislation would fortify America's long-term economic position and maintain its competitiveness on the global stage.

Industry leaders have reacted with significant interest to the proposal. Matt Cole, CEO and chairman of Strive, described ARMA as the single most important crypto legislation potentially emerging from Washington DC. To ensure transparency and accountability, the bill mandates the publication of quarterly proof of reserve reports and requires independent third-party audits of the Bitcoin reserve.

Furthermore, the legislation includes provisions to protect digital property rights by affirming that the federal government cannot impair the right of individuals to own or self-custody digital assets. Woofun AI analysis suggests that if passed, this framework would set a definitive precedent for sovereign digital asset management, shifting the US from a passive holder to an active strategic accumulator.