In today’s Bitcoin news, a bipartisan group of 16 US lawmakers introduced the American Reserve Modernization Act of 2026, the ARMA Bill, which proposes that the federal government actively accumulate up to 1 million Bitcoin over five years and hold it as a formal national reserve asset.
If passed, this would be the first time in history that the US Congress has enacted a deliberate federal policy to acquire and hold Bitcoin as a strategic store of value. This raises an obvious question for anyone new to this space: what exactly is a Bitcoin Strategic Reserve and why should you care?
This ARMA Bill news fell as Bitcoin fell -1% overnight, retreating towards $77,000 after a short-lived rally that saw BTC briefly recover to $78,000. However, altcoins are faring slightly better, with the total crypto market capitalization rising +0.5% on the day, once again surpassing $2.65 trillion.
$BTC still holding above the $75,000-$76,000 support zone.
As long as this holds, I expect a rally towards $79,500-$80,000. pic.twitter.com/k8g2E5WAHv
-Ted (@TedPillows) May 22, 2026
Bitcoin News Today: What the ARMA Bill Really Proposes
The US Reserve Modernization Act of 2026, introduced by Rep. Nick Begich and supported by 15 bipartisan cosponsors, aims for the US Treasury to acquire around 1 million Bitcoin over five years, representing 5% of the total supply.
Under this bill, Bitcoin must be held for at least 20 years and can only be sold to reduce the national debt, which currently exceeds $39 trillion.
ARMA is based on the BITCOIN Act introduced by Senator Cynthia Lummis and is designed to be budget neutral, funding itself by revaluing the price of the Federal Reserve’s long-stagnant gold certificates to current market values. This adjustment would create significant paper profits to purchase Bitcoin without increasing the national debt.
BITCOIN’S DIGITAL FORT KNOX MOVES FORWARD
Representative Nick Begich introduced the American Reserve Modernization Act (ARMA) with 16 original cosponsors.
The bill would establish a Strategic Bitcoin Reserve, consolidate digital assets held by the federal government and lock them up for the long term… pic.twitter.com/2ersoipGk2
– Bitcoin News (@BitcoinNewsCom) May 21, 2026
Transparency is emphasized through quarterly proof-of-reserve reporting and independent audits, with Bitcoin stored in geographically distributed secure vaults.
The bill also protects people’s rights to self-custody of their digital assets, ensuring that personal Bitcoin holdings are not affected by the government reserve.
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Bitcoin versus gold: why BTC and not something else?
The argument for Bitcoin as a reserve asset is based on three key points. Firstly, its supply is fixed, making it resistant to inflation, unlike fiat currencies. Second, it is easily verifiable on the public blockchain, unlike gold, which requires physical inspection.
Third, there is increasing geopolitical pressure, particularly amid competition between the United States and China, suggesting that owning Bitcoin can improve global competitiveness.
Representative Jared Golden noted that the United States, which currently holds 328,372 Bitcoin valued at more than $25.5 billion from seizures, lacks a federal policy on this asset. The proposed ARMA bill would stop public auctions of these holdings.
However, critics highlight Bitcoin’s volatility, which can cause drastic price drops, and its correlation with stocks during market stresses, raising concerns about the wisdom of committing national reserves to such an unstable asset.
What the ARMA Bill Means for Your Bitcoin Wallet
If ARMA is approved, it could cause a significant and lasting reduction in Bitcoin supply, with the United States aiming to acquire 1 million BTC in addition to its existing holdings. Matt Cole, CEO of Strive, calls ARMA Washington’s “most important crypto legislation,” as its implementation would mean the United States would absorb a large chunk of newly mined Bitcoin annually.
The key factor for your wallet is whether the bill moves forward. While WEAPON 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 toward spot Bitcoin ETFs, indicate that the overall policy direction will likely remain firm regardless of the outcome of ARMA.
Keep an eye on the Senate Banking Committee’s profit margin; A successful committee vote would indicate significant progress toward a US Bitcoin policy that could influence global perceptions of Bitcoin as a reserve asset.
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