U.S. Congress Pushes Historic Bitcoin Reserve Bill That Could Ban Government BTC Sales for 20 Years

A new bipartisan proposal in the United States Congress is sparking global attention in the crypto market after lawmakers introduced legislation that would prevent the federal government from selling its Bitcoin holdings for at least two decades.

The proposed law, known as the American Reserve Modernization Act (ARMA), would establish a formal Strategic Bitcoin Reserve under the U.S. Treasury. If passed, it could mark one of the most significant policy shifts in the history of digital assets in the United States.

Introduced on May 21, 2026, the bill is still in its early stages, but its structure, bipartisan backing, and long-term implications have already made it a major talking point among investors, analysts, and policymakers.

A Bipartisan Crypto Bill With Rare Political Support

The ARMA legislation was introduced by Republican Representative Nick Begich of Alaska and Democratic Representative Jared Golden of Maine, signaling unusual cross-party alignment in a deeply divided political environment.

At the time of introduction, the bill reportedly had 17 co-sponsors from both major parties, a detail that has added credibility to its legislative prospects.

Source: Official  Press Release

Supporters of the bill argue that the United States should treat Bitcoin as a strategic financial asset rather than a liquidated government holding.

What the American Reserve Modernization Act Proposes

The core idea behind ARMA is the creation of a centralized federal Bitcoin reserve managed by the U.S. Treasury Department.

Under current rules, the U.S. government typically acquires Bitcoin through criminal seizures, forfeitures, and enforcement actions. Historically, these assets have often been auctioned off, reintroducing them into the market.

The proposed legislation would fundamentally change that system.

Key provisions of ARMA include:

All federal agencies must identify and report their cryptocurrency holdings
All seized Bitcoin must be transferred to the U.S. Treasury reserve
Bitcoin placed in the reserve cannot be sold for 20 years, except for specific debt-related scenarios
A separate Digital Asset Stockpile would be created for non-Bitcoin cryptocurrencies
Quarterly “Proof of Reserve” reports would be published for public transparency
Independent third-party audits would be required
Congress would receive ongoing oversight authority over reserve operations

In addition, the bill includes protections for individual crypto users, explicitly stating that the federal government cannot prohibit Americans from owning, transferring, or self-custodying digital assets.

Self-custody refers to the ability to store cryptocurrencies in personal wallets rather than on centralized exchanges.

The Strategic Bitcoin Reserve Concept Explained

If implemented, the Strategic Bitcoin Reserve would function as a long-term digital asset holding account within the U.S. Treasury system.

Unlike traditional reserves that may be actively managed or liquidated, this reserve would operate under strict limitations. The government would not be allowed to sell Bitcoin for routine budget operations, and any potential liquidation would be restricted primarily to national debt reduction.

Supporters compare the concept to a sovereign wealth fund or national gold reserve, but built on Bitcoin’s fixed-supply digital infrastructure.

This framing reflects a growing narrative among policymakers who view Bitcoin as a “digital equivalent of gold.”

Why a 20-Year Non-Sale Rule Matters

One of the most controversial and closely watched aspects of ARMA is the proposed 20-year prohibition on selling Bitcoin held by the government.

Market analysts say such a restriction could have significant psychological and structural effects on the crypto market.

Source:  Cryptorover X

The United States is already considered one of the largest holders of Bitcoin due to asset seizures from criminal investigations. If those holdings are locked away under law, it could further reduce circulating supply available to the market.

Some analysts believe this could strengthen Bitcoin’s narrative as a scarce store of value, while others warn that the impact may be more symbolic than immediate.

Connection to Previous U.S. Crypto Policy Moves

The ARMA proposal builds on earlier policy direction, including a 2025 executive order that directed federal agencies to evaluate the creation of a national digital asset reserve.

Unlike executive orders, however, congressional legislation carries stronger legal permanence and is significantly harder to reverse.

This distinction is important. If ARMA becomes law, it would represent a structural shift in how the United States treats Bitcoin at the federal level, moving it from an enforcement-related asset to a strategic reserve asset.

Market Implications for Bitcoin and Crypto Investors

For investors, the introduction of ARMA has sparked debate about what long-term institutional holding by governments could mean for Bitcoin’s price dynamics.

Potential bullish implications:

Reduced future selling pressure from government-held Bitcoin
Increased perception of Bitcoin as a legitimate reserve asset
Stronger global confidence in Bitcoin’s long-term role
Possible influence on other countries considering similar policies

Potential limitations and risks:

The bill is still far from becoming law
Implementation timelines could be delayed or modified
Market impact may already be partially priced in
Global macroeconomic factors still dominate short-term price action

Despite uncertainty, analysts agree that even the introduction of such legislation signals growing institutional recognition of Bitcoin beyond speculative trading.

Global Reaction and Strategic Context

International observers are also closely watching the development, as U.S. policy often influences global regulatory trends.

If the United States formally adopts a Bitcoin reserve strategy, it could pressure other major economies to clarify their own stance on digital asset holdings.

Some countries have already begun exploring sovereign crypto reserves, while others remain cautious due to volatility and regulatory concerns.

The ARMA proposal therefore sits at the intersection of monetary policy, national security, and emerging financial infrastructure.

Expert Perspective: Symbolism vs Structural Change

Financial experts remain divided on the real-world impact of the bill.

Some argue that the primary effect is symbolic, reinforcing Bitcoin’s legitimacy as a long-term asset class rather than a transactional currency. Others believe the structural changes—particularly the mandatory holding period and transparency requirements—could reshape how governments interact with digital assets.

The inclusion of quarterly reporting and independent audits also introduces a level of transparency not typically associated with sovereign asset holdings.

What Happens Next

The ARMA bill must still pass committee reviews, floor votes in both the House of Representatives and the Senate, and ultimately receive presidential approval before becoming law.

Given the complexity of U.S. legislative processes, this could take months or even years.

During this time, amendments, revisions, or political negotiations may significantly alter the final version of the bill.

Conclusion: A Potential Turning Point for Bitcoin Policy

The introduction of the American Reserve Modernization Act marks one of the most significant legislative developments in the history of Bitcoin policy in the United States.

While still in its early stages, the proposal reflects a shifting perspective in Washington, where Bitcoin is increasingly being discussed not as a speculative asset, but as a potential component of national financial strategy.

Whether ARMA becomes law or not, its introduction alone signals a broader transformation in how governments are beginning to engage with digital assets.

For investors and market participants, the message is clear: Bitcoin is no longer operating solely on the fringes of finance. It is now part of high-level policy discussions that could shape its future for decades.

hoka.news – Not Just Crypto News. It’s Crypto Culture.

Writer @Erlin
Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.
 
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