The American Reserve Modernization Act (ARMA) would establish the federal government's Bitcoin reserve through an act of Congress for the first time, rather than relying on executive authority. The bill faces a House Financial Services Committee vote on September 16, with significant implications for how bipartisan the cryptocurrency policy coalition truly is.
Currently, only one Democratic cosponsor backs the measure, and that lawmaker does not serve on the committee considering it. The bill has attracted 23 cosponsors overall, 22 of whom are Republicans. Six Republican committee members support it, but none of the panel's 23 Democrats have signed on.
Context: Executive Order vs. Statute
President Donald Trump established the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile through executive order in March 2025. ARMA would convert these holdings into a statutory reserve, which a future president could not unilaterally reverse through another executive order, though a future Congress could still modify or repeal the law.
Bill Details and Safeguards
ARMA consolidates qualifying government-held Bitcoin at the Treasury and creates a formal Strategic Bitcoin Reserve alongside a Digital Asset Stockpile for non-Bitcoin assets. An amendment posted ahead of the committee markup includes a minimum 20-year holding period for Bitcoin placed in the reserve and requires annual public proof-of-reserve reports with independent third-party verification covering holdings, transactions, and key control.
The updated text also calls for a 180-day study on whether the government could acquire additional Bitcoin through budget-neutral methods. It does not authorize borrowing, new taxes, deficit spending, or pledging government assets as collateral.
Comparison to Earlier Crypto Legislation
The contrast with the CLARITY Act, which regulates private crypto markets, is striking. That bill advanced through the House Financial Services Committee on a bipartisan 32-19 vote and attracted 78 Democratic votes in the full House. CLARITY establishes rules for how private crypto markets operate, while ARMA asks Congress to make Bitcoin a formal federal asset.
Government Holdings and Valuations
Third-party trackers estimate U.S. government-linked Bitcoin holdings at approximately 324,000 to 328,000 BTC. At current market levels near $79,000, roughly 328,000 BTC would be valued at approximately $26 billion. Those same holdings reached roughly $41.4 billion at last October's peak of $126,000 and were worth approximately $19.7 billion at August's two-year low near $60,000.
Arguments on Both Sides
Supporters can argue that Bitcoin holdings provide government exposure to an asset that could appreciate while federal debt continues to rise. The Congressional Budget Office projects the federal deficit climbing from $1.9 trillion this year to $3.1 trillion by 2036, with debt held by the public rising from 101% to 120% of GDP over the same period.
Opponents can argue that placing a highly volatile asset on a federal balance sheet already facing fiscal pressure presents governance risks. Similar concerns have emerged internationally. European Central Bank President Christine Lagarde has emphasized that reserve assets must remain liquid and secure. World Bank research concluded that crypto assets are not yet suited to central bank reserve portfolios due to shortcomings in safety, liquidity, and market maturity.
What Wednesday's Vote Will Signal
Republicans hold a 30-23 majority on the House Financial Services Committee, giving ARMA a path to advance without Democratic support. The key question is whether any Democrats vote for it. A party-line vote would indicate that bipartisan crypto support does not extend to federal Bitcoin ownership. Even one or two Democratic votes would suggest some lawmakers are willing to consider Bitcoin as an asset held by the federal government. Democratic amendments proposing changes to custody, reporting, or acquisition rules while accepting the underlying reserve concept would signal constructive engagement with the concept itself.
The September 16 markup will provide the first clear indication of how many lawmakers are willing to support putting Bitcoin on the federal balance sheet.
