Bipartisan Test for US Government's Bitcoin Reserve

The US government's Bitcoin reserve faces a crucial test this week as lawmakers consider a bipartisan bill that would make Bitcoin a formal Federal Reserve asset. The American Reserve Modernization Act (ARMA) has attracted only one Democratic cosponsor, and he does not sit on the committee considering it.

ARMA is a more restrained proposal than its predecessor, the BITCOIN Act framework. It centers on consolidating qualifying government-held Bitcoin at the Treasury and creating a formal Strategic Bitcoin Reserve alongside a separate Digital Asset Stockpile for non-Bitcoin assets.

The bill includes an amendment that retains a minimum 20-year holding period for Bitcoin placed in the reserve and requires an annual public proof-of-reserve report. It also calls for a 180-day study of whether the government could acquire additional Bitcoin through budget-neutral methods.