New Bill Targets 1 Million Bitcoin Funded by Gold and Locked for 20 Years

Key Takeaways

• The ARMA bill was introduced with 16 bipartisan cosponsors, targeting 1 million BTC — 5% of all Bitcoin — funded by revaluing US gold reserves
• Bitcoin would be classified as a Tier 1 asset on the same legal footing as gold, with holdings locked for 20 years and impossible to reverse
• All future government Bitcoin seizures would go to the reserve instead of being auctioned as the global Bitcoin reserve race accelerates

Congress is moving closer to formally establishing a Strategic Bitcoin Reserve, and the proposal is already drawing attention across financial and crypto markets. The American Reserve Modernization Act, or ARMA, introduced by Rep. Nick Begich with bipartisan support, would allow the US Treasury to acquire up to 1 million BTC over five years. The plan also ties Bitcoin more directly to the country’s reserve framework. It is also placing it alongside gold as a strategic asset. For many investors watching Bitcoin price trends, the bill is a shift from discussion to actual policy planning.

Also Read: Gold Price Drops on Stronger US Dollar and Rising Yields

Why Buying 5% of All Bitcoin With Gold Could Change the Reserve System Forever

The bill would authorize the Treasury to buy as much as 200,000 BTC annually over five years, targeting roughly 5% of Bitcoin’s total supply. It also seeks to turn President Donald Trump’s March 2025 executive order on the Strategic Bitcoin Reserve into permanent law rather than leaving it subject to future administrations.

One of the main selling points behind ARMA is that lawmakers describe it as budget-neutral. Instead of issuing new debt, the proposal relies on revaluing Federal Reserve gold certificates. These are still officially priced at $42.22 per ounce, a figure that dates back to 1973. With gold trading far above that level today, the accounting adjustment would create additional balance sheet capacity without direct taxpayer funding.

The legislation classifies Bitcoin as a Tier 1 strategic reserve asset. It places it on a similar legal footing as gold reserves. It also introduces a mandatory 20-year holding period for BTC acquired under the program.

The bill would further change how the government handles seized digital assets. Instead of auctioning confiscated Bitcoin through the US Marshals Service, future holdings would be transferred directly into the US Bitcoin reserve. According to public records, the US government already controls more than 328,000 BTC from previous enforcement actions. This includes the Silk Road and Bitfinex cases. Begich further added,

“When you look at gold, it is the dominant precious metal reserve. When you look at Bitcoin, it represents about 60% of all market cap for the entire crypto space. So the market has decided, in the case of gold and in the case of bitcoin, that this will be the predominant store of value within that asset class.”

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Governments Are Taking Bitcoin Reserves More Seriously

The proposal arrives as reserve diversification and de-dollarization debates continue globally. Brazil is currently discussing its own Bitcoin reserve framework. Meanwhile, several US states have introduced separate digital asset reserve bills over the past year.

Supporters of the Bitcoin bill of 2026 say the reserve would strengthen the country’s long-term financial position if digital assets continue gaining relevance. Critics, meanwhile, argue that Bitcoin’s volatility still makes it difficult to compare directly with traditional reserve assets.

Bitcoin price was trading around $77,335.93 at the time of writing. Traders had a limited reaction to the proposed reserve framework and growing discussion around sovereign BTC accumulation.

But the discussion around a Bitcoin ‘Fort Knox’ is no longer limited to the crypto industry. It is now part of mainstream policy conversations in Washington.

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