U.S. Government's Strategic Bitcoin Reserve Set for 20-Year Lockdown

The U.S. government's Strategic Bitcoin Reserve is at the center of a bill that aims to lock its existing holdings for 20 years and require regular audits. The American Reserve Modernization Act of 2026, or ARMA, has been introduced in Congress and will undergo a markup on September 16. If passed, the bill would make it difficult for future administrations to reverse course and sell the reserve's Bitcoin.

The Strategic Bitcoin Reserve was created by Executive Order 14233 in March 2025 and holds approximately 198,000 Bitcoin, which were seized through federal criminal and civil forfeiture cases rather than purchased on the open market. The reserve is currently managed by the Treasury and has not been audited for its exact holdings.

ARMA would require the Treasury to hold all of the reserve's Bitcoin for at least 20 years without selling or trading them, except in the case of forks or airdrops. It would also mandate quarterly proof-of-reserve reports from independent third-party auditors to verify the government's Bitcoin holdings.

The bill's proponents argue that it will provide a stable and lasting commitment to the reserve, while critics point out that it does not address the issue of new purchases, which are currently being considered through separate legislation. The BITCOIN Act would allow the Treasury to buy 200,000 Bitcoin each year for five years, but has yet to receive a hearing.