New Bill Aims to Protect US Crypto Reserve From Political Turnover

TL;DR: 

• The legislative proposal requires the Treasury Department to acquire up to 1 million BTC, representing approximately 5% of the cryptocurrency’s total supply. 
• The bill stipulates a mandatory minimum holding period of 20 years for the acquired digital currencies, which must remain in cold storage. 
• The Senate Banking Committee approved the CLARITY structural bill this past May 14th with a 15-to-9 bipartisan vote. 

Congressman Nick Begich of Alaska introduced the American Reserve Modernization Act (ARMA). This is structured federal legislation designed to convert the Strategic Bitcoin Reserve into a permanent legal statute. Its objective is to protect the federal government’s funds in digital assets from potential political modifications by future administrations. 

America’s reserves balance sheet is a critical component of our nation’s insurance policy, bolstering our currency and providing assurance during times of uncertainty. Over time, the prevailing sentiment as to what constitutes a durable store of value can shift, and as such it is… pic.twitter.com/7XfBwAWFGi

— Congressman Nick Begich (@RepNickBegich) May 21, 2026

A Legal Structure for the Digital Reserve 

This legislation is presented as a rebranded version of the BITCOIN Act originally introduced in March 2025. According to the technical report from Congressman Begich’s office, the redrafting of the text arose after a series of deliberations with the House Financial Services Committee, aimed at consolidating political support that the initial proposal failed to secure during the previous legislative period. 

The bill mandates the formal establishment of the Strategic Bitcoin Reserve under the direct jurisdiction of the Treasury Department. Additionally, it contemplates building an independent inventory reserved for other crypto assets confiscated by federal agencies.

According to the financial projections accompanying the proposal, the scheduled purchases of the digital asset will be funded through mechanisms that are neutral for the national budget. These instruments include the Federal Reserve’s discretionary surplus fund and an accounting revaluation of gold certificates in the state’s possession.  Speaking to Fox Business, Begich stated that market dynamics place Bitcoin with nearly 60% of the crypto sector’s total capitalization, comparing its relevance to the dominant role gold plays within the precious metals category. 

Coordination on the Regulatory Ecosystem’s 

Agenda The legislation promoted by Begich and Senator Cynthia Lummis surpasses the scope of the executive order signed by the presidency in March 2025, which was limited to grouping seized funds into a single deposit. The terms of the ARMA proposal compel the execution of direct purchases on the open market, explicitly prohibiting the sale of said holdings for two decades. Legislator Pat Harrigan, a co-sponsor of the bill, noted that the U.S. government custodians billions of dollars in seized Bitcoin without a unified wealth management strategy. 

This progress coincides with an increase in Congress’s efforts to institutionalize cryptocurrency policies before political calendars concentrate on mid-term campaigns. 

During the sessions on May 14, 2026, the Senate Banking Committee referred the CLARITY Act to the floor through a vote of 15 in favor and 9 against, driven by the backing of legislators from both caucuses. 

Senator Cynthia Lummis considered that a definitive floor vote in mid-June could present an optimistic scenario, after it was confirmed that the Senate entered a parliamentary recess.  Lummis and Senator Bernie Moreno jointly warned that if final approval is not achieved before the summer vacation, the formal legislative debate on the crypto market structure in the United States could be postponed until the next constitutional period. 

For her part, Senator Elizabeth Warren expressed her position of rejection regarding the CLARITY Act after labeling it as an instrument designed directly by crypto industry participants for their own corporate benefit.