ARMA Clears House Committee: What's Next for the Strategic Bitcoin Reserve

A bill to make the Strategic Bitcoin Reserve permanent has passed a crucial hurdle in the US House of Representatives. The American Reserve Modernization Act (ARMA) aims to codify the reserve, which was established by President Donald Trump's executive order in March 2025.

However, experts caution that this development will not necessarily send Bitcoin prices soaring. According to Arkham, a blockchain analytics firm, there are currently around 328,000 BTC in US government wallets, mostly from large seizures. If ARMA becomes law, these coins would be locked up for 20 years and subject to annual audits.

The reserve's vault is not meant to be a shopping cart, but rather a secure storage facility for seized Bitcoins. The bill does not authorize the government to buy any Bitcoin, and direct purchases are still undergoing a 180-day study.

Some analysts argue that locking up $27.6 billion worth of Bitcoin will remove supply from the market, potentially driving prices up. However, the government's stash is only about 1.6% of the total market cap, which sits at around $1.68 trillion.

The bill still needs to pass through several more stages before becoming law, including a House floor vote, Senate passage, and a presidential signature. If signed into law, ARMA would expire if not implemented by the new Congress in January.