Merkle advises watching US Bitcoin bill
Proposal calls for permanent reserve
The American Reserve Modernization Act (ARMA Act) proposes a US strategic Bitcoin reserve, as investors watch whether the legislation provides a long-term uptick for Bitcoin demand and creates a role for the cryptocurrency as a government-held asset.
Thanalop Preedamanoch, head of investment and fund manager at Merkle Capital, said major Bitcoin rallies have historically been driven by new sources of demand. Retail investors played a key role in the 2021 bull market, while institutional demand accelerated in 2024 following the introduction of spot Bitcoin exchange-traded funds.
The next major source of demand could come from governments, with the US potentially setting the direction for other countries.
The ARMA Act seeks to switch the strategic Bitcoin reserve from an executive policy into a permanent legal framework, which could reduce the risk of future administrations reversing the policy and selling government-held Bitcoin, he said.
However, before the bill can gain momentum, investors are monitoring the US CLARITY Act, which aims to establish clearer rules for digital assets and define the respective responsibilities of the Securities and Exchange Commission and Commodity Futures Trading Commission.
The legislation would not directly create new Bitcoin demand, but clearer regulation could reduce uncertainty across the crypto market and improve the prospects for wider digital asset policies, said Mr Thanalop.
The strategic Bitcoin reserve was formally established as a policy in March 2025, when President Donald Trump signed an executive order directing the government to retain Bitcoin seized through criminal and civil forfeiture proceedings rather than sell it. The administration also explored budget-neutral ways to increase its holdings.
