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During the Bitcoin 2026 conference in Las Vegas, Representative Nick Begich (R-AK) announced the reintroduction of federal legislation to establish a United States Strategic Bitcoin Reserve. Formally rebranded as the American Reserves Modernization Act (ARMA)—previously known as the BITCOIN Act—the bill seeks to codify existing executive orders into permanent federal law and radically alter the tax treatment of the digital asset.
Key Provisions of the ARMA Bill
- Asset Acquisition: Directs the U.S. government to purchase 1 million BTC over a five-year period.
- Strategic Storage: Codifies the centralized custody of Bitcoin seized through law enforcement and asset forfeiture into a singular national reserve.
- Tax Incentives: According to reports from the conference, the bill includes provisions to eliminate capital gains taxes on Bitcoin, positioning it as a sovereign-grade reserve asset on par with gold.
- Self-Custody Protections: Includes language affirming the rights of individuals to maintain private keys and self-custody their assets.
Transitioning from Executive Order to Federal Law
The ARMA bill is designed to provide “long-term sustainability and validity” to the Bitcoin reserve established by a March 2025 executive order. While the initial executive order barred the Treasury from liquidating its current holdings—estimated at approximately 328,372 BTC—Rep. Begich emphasized that legislative action is required to prevent future administrations from reversing the policy.
Industry Background: The “Sovereign-Grade” Asset
The push for a Strategic Bitcoin Reserve follows a global trend of nation-states reassessing digital assets in the face of inflationary pressures on traditional fiat currencies. Proponents of the ARMA bill argue that by holding 5% of the global Bitcoin supply, the United States would secure its position as a global “liquidity gatekeeper” and strengthen the U.S. Dollar (USD) through a decentralized, scarce asset.
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Market Implications
Analysis: The formalization of a U.S. Bitcoin reserve could trigger a “global reserve race,” as central banks worldwide consider diversifying their foreign exchange structures to include digital assets. Furthermore, the proposed removal of capital gains taxes would likely stimulate significant institutional and retail demand, potentially decoupling Bitcoin from other risk-on assets.
Expert Commentary
Patrick Witt, White House digital asset advisor, confirmed that the administration has cleared “major legal hurdles” regarding the custody of the government’s current $25 billion Bitcoin stockpile. Witt hinted that a “landmark announcement” regarding the reserve is expected in the coming weeks, even before the ARMA bill reaches a final vote.
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Representative Nick Begich stated at the conference:
“The ability to maintain self-custody of private keys is fundamental to financial sovereignty, privacy, and personal liberty.”
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Risks and Limitations
Despite the momentum, the ARMA bill faces significant hurdles. Permanent Congressional legislation requires bipartisan support that has yet to be fully secured in the 119th Congress. Critics also point to the inherent volatility of Bitcoin, noting that a national balance sheet tied to a digital asset could introduce unprecedented fiscal risk during market downturns.
Conclusion
The introduction of the ARMA bill represents a historic shift in U.S. financial policy, moving Bitcoin from a speculative asset to a core pillar of national security strategy. By combining a 1 million BTC acquisition plan with potential tax exemptions, the legislation aims to cement the United States’ leadership in the digital financial era.
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