US Congress Reignites Bitcoin Reserve Initiative with Strategic Bill

In a groundbreaking move that could redefine the U.S. approach to digital assets, a bipartisan group of lawmakers has unveiled a new bill aimed at establishing Bitcoin as a strategic reserve asset, a decision resonating through economic and political circles.

The American Reserve Modernization Act (ARMA) of 2026, announced on Thursday, outlines plans for the U.S. government to accumulate up to one million Bitcoin over a five-year period. This initiative, driven by 16 co-sponsors from both major political parties, mandates that the cryptocurrency be retained for a minimum of 20 years, unless the holdings are utilized to address the ballooning national debt, which recently surpassed $39 trillion.

"The U.S. already stands as the leading nation in Bitcoin holdings, yet we lack a formalized strategy for leveraging this asset," said U.S. Representative Jared Golden, a co-sponsor of the initiative. The bill signals a significant shift in legislative focus, moving beyond speculation to a structured management of digital assets.

Representative Nick Begich, the bill's primary sponsor, emphasized the importance of safeguarding these assets. “This legislation is essential for establishing a clear legal framework that protects our Bitcoin reserves and enhances transparency for the American public,” he noted, underscoring the potential for rigorous oversight through quarterly proof of reserve reports.

Echoing these sentiments, Patrick Witt of the President’s Council of Advisors on Digital Assets referred to ARMA as "Version 2" of the earlier BITCOIN Act, which faced challenges since its introduction in 2024. Witt acknowledged that the White House has invested considerable time analyzing the legal framework surrounding a federal Bitcoin reserve.

As digital currencies grow in global prominence, proponents argue that legitimizing Bitcoin as a reserve could reinforce the U.S.'s economic stature internationally. Representative Mike Carey remarked, "With the increasing significance of digital assets globally, this bill could be pivotal in ensuring America remains competitive."

In addition to its economic implications, ARMA also seeks to fortify property rights for individual digital asset holders, asserting that the federal government cannot infringe on the right to own or self-custody these assets. This effort reflects a broader national conversation about digital ownership amid evolving financial landscapes.

Industry experts hail the legislative effort as potentially the most critical crypto policy to emerge from Washington, D.C., emphasizing that it not only positions the United States favorably in the burgeoning digital economy but also sets a precedent for future regulatory frameworks.

As this initiative gains traction, its enforcement and implications will likely be scrutinized closely, making it a noteworthy chapter in the intertwining narratives of technology, economy, and national policy.

Source: Cointelegraph

Source: CoinTelegraph - Cryptocurrency & Web3