Bipartisan Test for US Bitcoin Reserve Legislation

The US Bitcoin reserve is facing a crucial bipartisan test on Wednesday as the American Reserve Modernization Act (ARMA) comes before the House committee for its first vote.

Unlike previous crypto-related legislation, such as the CLARITY Act, which established rules for private markets and garnered support from 78 House Democrats, ARMA has attracted only one Democratic cosponsor, Maine Rep. Jared Golden, who does not sit on the Financial Services Committee.

The bill aims to consolidate qualifying government-held Bitcoin at the Treasury and create a formal Strategic Bitcoin Reserve alongside a separate Digital Asset Stockpile for non-Bitcoin assets. An amendment posted ahead of the markup retains a minimum 20-year holding period for Bitcoin placed in the reserve, requires an annual public proof-of-reserve report, and calls for a 180-day study on acquiring additional Bitcoin through budget-neutral methods.

The ARMA bill is seen as a more restrained proposal than its predecessor, the BITCOIN Act framework. However, despite its attempts to broaden appeal, it has failed to garner more bipartisan support.