In today’s Bitcoin news, a bipartisan group of 16 U.S. lawmakers introduced the American Reserve Modernization Act of 2026, or ARMA Act, proposing that the federal government actively accumulate up to 1 million Bitcoins over five years and hold them as formal national reserve assets.
If passed, it would be the first time in history that the U.S. Congress has enacted an intentional federal policy to acquire and hold Bitcoin as a strategic store of value. This raises obvious questions for those new to this field. What exactly is a strategic Bitcoin reserve and why should you care?
News of this ARMA bill came as Bitcoin fell by -1% overnight, with BTC falling towards $77,000 after a brief rally that briefly regained $78,000. However, altcoins fared a little better, with the crypto market capitalization rising +0.5% on the day to over $2.65 trillion.
$BTC remains above the $75,000 to $76,000 support zone.
As long as this situation continues, I expect it to rise towards $79,500-$80,000. pic.twitter.com/k8g2E5WAHv
— Ted (@TedPillows) May 22, 2026
Today’s Bitcoin News: What the ARMA Bill Actually Proposes
The U.S. Reserve Modernization Act of 2026, introduced by Representative Nick Begich and supported by 15 bipartisan co-sponsors, aims to have the U.S. Treasury acquire approximately 1 million Bitcoins over five years, representing 5% of the total supply.
Under the bill, Bitcoin would have to be held for at least 20 years and could only be sold to reduce the national debt, which currently exceeds $39 trillion.
ARMA is based on the Bitcoin Act introduced by Sen. Cynthia Lummis and is designed to be budget-neutral and would be funded by revaluing the Federal Reserve’s long-stagnant gold certificate prices to current market values. This adjustment would result in significant paper profits for purchasing Bitcoin without adding to the national debt.
Bitcoin’s Digital Fort Knox moves forward
Congressman Nick Begich proposed the American Reserve Modernization Act (ARMA) with 16 original co-sponsors.
The bill would establish a Strategic Bitcoin Reserve, consolidating digital assets held by the federal government and locking them up for the long term… pic.twitter.com/2ersoipGk2
— Bitcoin News (@BitcoinNewsCom) May 21, 2026
Transparency is emphasized through quarterly reserve attestation reports and independent audits, and Bitcoin is stored in secure, geographically distributed vaults.
The bill also protects individuals’ rights to self-manage their digital assets and ensures that their Bitcoin holdings are not subject to government reserves.
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Bitcoin vs Gold: Why BTC and not something else?
The argument for Bitcoin as a reserve asset is based on three key points. First, unlike fiat currency, it has a fixed supply and is therefore resistant to inflation. Second, it can be easily verified on a public blockchain, unlike gold, which requires physical inspection.
Third, geopolitical pressures are increasing, especially in the competition between the US and China, suggesting that holding Bitcoin could increase global competitiveness.
Representative Jared Golden said the United States currently holds 328,372 Bitcoins worth $25.5 billion in seizures, but there is a lack of federal policy on this asset. The proposed ARMA bill would end public auctions of these holdings.
But critics have highlighted Bitcoin’s volatility, which can lead to sharp price declines, and its correlation with equities during times of market stress, raising concerns about the wisdom of putting national reserves into such a volatile asset.
(Source: JustETF.com)
What the ARMA bill means for your Bitcoin portfolio
If ARMA passes, the US aims to acquire 1 million BTC on top of its existing holdings, potentially significantly reducing Bitcoin supply for an extended period of time. Strive CEO Matt Cole called ARMA the Washington government’s “most important crypto bill” because its implementation would mean the U.S. absorbs the majority of newly mined bitcoins each year.
A key component of the portfolio is whether the bill moves forward. Although ARMA has been introduced, it is not yet law. The Senate Bitcoin Act is in the Banking Committee, and if both chambers pass compatible versions, Bitcoin purchases could begin around the fourth quarter of 2026.
Trends in institutional adoption, such as Morgan Stanley’s move to a Bitcoin spot ETF, indicate that the overall policy direction is likely to remain strong, regardless of the ARMA outcome.
Watch for Senate Banking Committee hikes. If the committee’s vote is successful, it would mark significant progress toward U.S. Bitcoin policy and could impact global perceptions of Bitcoin as a reserve asset.
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Today’s Bitcoin News: What is the ARMA Bill and what does it mean for BTC? The post appeared first on 99Bitcoins.
