U.S. Congressional Proposal: Establishing Bitcoin as a Strategic Reserve
On May 21, 2026, the U.S. Congress introduced a legislative proposal titled the "American Reserve Modernization Act of 2026" (ARMA, H.R. 8957). The core objective of this bill is to formally establish the U.S. government's current holdings of Bitcoin as a "Strategic Bitcoin Reserve" and integrate its management into federal law. This initiative aims to lay the groundwork for U.S. financial sovereignty and national security in the digital economy era.
20-Year Lock-up Period and "No-Sell" Policy
According to the American Reserve Modernization Act, all Bitcoin deposited into the Strategic Bitcoin Reserve will be subject to a lock-up period of at least 20 years. During this period, these Bitcoins may not be sold, exchanged, auctioned, pledged, or disposed of for any other purpose. Each time new Bitcoin is deposited into the reserve, its 20-year lock-up period will reset. The only exception in the bill is that, under specific circumstances, these assets may be used to reduce national debt.
This legislative proposal further solidifies a presidential executive order from early 2025. At that time, the U.S. President signed an executive order establishing the "U.S. Strategic Bitcoin Reserve" and implementing a "no-sell" policy for existing Bitcoin holdings, changing the previous practice where law enforcement agencies typically sold confiscated cryptocurrencies.
Overview of U.S. Government Bitcoin Holdings
As of May-June 2026, the U.S. government holds approximately 328,372 Bitcoins, making it one of the largest government holders of Bitcoin globally. The value of these Bitcoins exceeded $25 billion in May 2026. Notably, these Bitcoins were not acquired through market purchases but entirely through law enforcement seizures, primarily involving major cases such as "Silk Road," the Bitfinex hack, and the Prince Group.
Transparency and Future Acquisition Strategy
The American Reserve Modernization Act also emphasizes transparency. The bill requires the Treasury Department to publish quarterly "proof of reserve" reports and conduct independent third-party audits to ensure public awareness and trust in the reserve's status. Furthermore, the bill directs the Treasury and Commerce Departments to research budget-neutral acquisition methods to increase U.S. Bitcoin holdings without incurring new taxes or deficit spending.
Multiple Perspectives and Market Impact
- U.S. Government and Congressional Members: The presidential administration and bipartisan members of Congress (such as Representatives Nick Begich and Jared Golden) generally believe that treating Bitcoin as a strategic asset and holding it long-term will help the U.S. maintain leadership in the digital age, protect taxpayer interests, and strengthen national financial sovereignty.
- Bitcoin Advocates: Generally support the bill, believing it will help improve the governance of digital assets and investor confidence.
- Market Impact: The U.S. government's clear announcement to retain rather than sell its substantial Bitcoin holdings effectively alleviates potential selling pressure in the cryptocurrency market. This policy is interpreted by the market as further recognition of the cryptocurrency asset class and may provide support for future Bitcoin prices.
Deeper Signals Released
This series of actions by the U.S. government, particularly the congressional legislative proposal, sends multiple profound signals to the global market:
- Bitcoin's Long-Term Strategic Asset Status: This indicates that the U.S. government now views Bitcoin as a strategic national reserve asset, similar to gold, reflecting a long-term commitment to and recognition of digital assets.
- Reduced Potential Market Selling Pressure: The 20-year lock-up and no-sell policy eliminate potential selling pressure from a large amount of Bitcoin in the market, providing support for Bitcoin's long-term value.
- Strengthening Financial Sovereignty and National Security: By establishing strategic reserves, the U.S. aims to strengthen its financial sovereignty and national security position in the digital economy to address future changes in the global financial landscape.
- Promoting a Digital Asset Regulatory Framework: This legislative attempt to establish a long-term, transparent, and consistent framework for federal government management of digital assets foreshadows a potentially deeper integration of cryptocurrencies into national financial policy in the future.
- Shift in Government Attitude Towards Cryptocurrencies: From initial law enforcement seizures followed by sales to the current long-term holding and strategic reserve status, this marks a significant shift in the U.S. government's attitude towards cryptocurrencies, moving from mere regulation and suppression to strategic utilization and integration.
