A new bipartisan bill in Congress could make Bitcoin part of the United States’ long-term financial strategy. Lawmakers want the government to officially create a national bitcoin reserve and set clear rules for how digital assets are managed.

The bill is called the American Reserve Modernization Act (ARMA). It was introduced by Congressman Nick Begich and Democratic Congressman Jared Golden. The proposal has support from lawmakers in both political parties.

Supporters of the bill say Bitcoin is becoming more important around the world. They believe the United States should prepare for the future by creating a clear national policy for the digital asset.

Begich said the bill would help the country stay strong financially while protecting taxpayers and individual freedoms. He added:

Under the proposal, the U.S. Treasury Department would create a Strategic Bitcoin Reserve. The government would also create a separate storage system for other digital assets it owns.

Right now, the U.S. government already holds a large amount of bitcoin. Most of it came from criminal investigations and seized assets connected to cases like Silk Road and the Bitfinex hack.

Lawmakers backing the bill say the government has never had a clear plan for handling those bitcoin holdings.

“The United States government already holds billions in seized bitcoin with no coherent strategy for managing it, and that needs to change,” said Congressman Pat Harrigan.

The bill builds on earlier digital asset proposals introduced in Congress. One earlier plan suggested that the government buy up to one million bitcoin over five years.

However, the new ARMA bill does not directly require large bitcoin purchases. Instead, it asks officials to study “budget-neutral” ways to increase bitcoin reserves without raising taxes or increasing national debt.

The proposal would also require the government to keep bitcoin in the reserve for at least 20 years. Supporters say this shows bitcoin should be treated as a long-term strategic asset.

Begich compared Bitcoin to gold, saying both are seen as major stores of value in their markets.

“When you look at gold, it is the dominant precious metal reserve,” Begich said. “When you look at bitcoin, it represents about 60% of all market cap for the entire crypto space.”

Supporters of the bill also argue that other countries are moving quickly into digital finance, and the United States should not fall behind.

Congressman Barry Moore warned that foreign rivals are already taking digital assets seriously. “Washington has ignored the reality that digital assets are becoming a major part of the global economy while countries like China move aggressively to gain an advantage,” Moore said.

The legislation also includes transparency rules. Federal agencies would have to report all digital assets they control. The Treasury Department would publish quarterly “Proof of Reserve” reports and undergo outside audits.

Another important part of the bill is protecting digital asset users. The proposal says Americans should have the right to own, transfer, and store their digital assets without government interference.

This comes as several U.S. states are also passing related laws. In South Carolina, Governor Henry McMaster recently signed a law protecting digital asset users and Bitcoin miners while banning the use of central bank digital currencies, also known as CBDCs.