A new bipartisan bill to establish a strategic bitcoin reserve in the United States has dropped the previously discussed 1 million BTC purchase target and introduced a 20-year lockup period, reshaping the legislative approach to government-held Bitcoin.
What changed in the revised strategic bitcoin reserve bill
KEY POINTS
- The revised bill removes a fixed target of acquiring 1 million BTC for the U.S. government reserve.
- A mandatory 20-year lockup period has been added, restricting sale or transfer of reserve holdings.
- The legislation is a revised version of earlier strategic bitcoin reserve proposals, not a new initiative.
Congressman Nick Begich introduced legislation to establish a strategic bitcoin reserve, marking the House version of a broader bipartisan push. The bill departs from earlier proposals by eliminating a specific acquisition target of 1 million BTC.
On the Senate side, Senator Cynthia Lummis and colleagues introduced companion legislation to codify the strategic bitcoin reserve into permanent law. The revised framework adds a 20-year lockup provision, meaning any Bitcoin held in the reserve could not be sold or transferred for two decades.
The bill has been referred to as the ARMA (American Reserve of Money Act), with bipartisan support aimed at enshrining the reserve into permanent law rather than leaving it subject to executive discretion alone.
Why removing the 1 million BTC target matters
Earlier iterations of strategic bitcoin reserve proposals floated a hard target of accumulating 1 million BTC, which at current prices would represent a massive fiscal commitment. Removing that fixed number shifts the bill from an aggressive accumulation mandate to a more flexible reserve framework.
A hard purchase target would have committed the U.S. government to acquiring roughly 5% of Bitcoin’s total supply, creating predictable buying pressure and raising questions about market distortion. An open-ended reserve structure allows policymakers to adjust holdings based on fiscal conditions without being locked into a predetermined quantity.
The revised approach may also improve the bill’s political viability. A specific 1 million BTC figure gave opponents a concrete price tag to attack, while the flexible model reframes the debate around whether the government should hold Bitcoin at all. This shift comes as digital asset markets continue to evolve, with exchanges like Coinbase launching new index-linked futures products that reflect growing institutional demand.
How the 20-year lockup period changes the reserve debate
The 20-year lockup provision is arguably the most consequential structural feature of the revised bill. It would prevent any administration from liquidating the reserve for short-term budget needs, effectively treating Bitcoin as a long-duration strategic asset similar to gold reserves.
A two-decade restriction on sale or transfer means the reserve would span at least five presidential administrations. This design signals that sponsors view Bitcoin not as a trading asset but as a permanent component of national financial infrastructure.
The lockup provision may prove more important than the removed purchase target in shaping the long-term debate. While the acquisition amount can be adjusted through appropriations, a statutory lockup creates a binding constraint that future Congresses would need to actively repeal rather than simply defund. The concept of long-term commodity reserves is gaining traction across asset classes, as seen in developments like OKX’s partnership with ICE to offer perpetual oil futures.
As traditional and digital asset reserve strategies increasingly overlap, the structure of commodity-linked financial instruments may inform how lawmakers think about a bitcoin reserve’s role alongside gold and petroleum stockpiles. Committee hearings and co-sponsor additions will be the next milestones as the bill moves through both chambers.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
