US Government Bitcoin Reserve Plan Could Shape Crypto Demand

The US government's proposed Bitcoin reserve could have significant long-term implications for cryptocurrency prices.

Merkle Capital, an investment and fund manager, believes that governments could become a major source of demand for cryptocurrencies in the future. This is particularly relevant as the American Reserve Modernization Act (ARMA Act) aims to establish a permanent legal framework for the US strategic Bitcoin reserve.

The ARMA Act would prevent the sale or transfer of government-held Bitcoin for at least 20 years and require regular disclosure, including quarterly proof-of-reserve audits. While this would not directly create new demand, clearer regulation could reduce uncertainty across the crypto market and improve prospects for wider digital asset policies.