[Digital Today reporter Jinju Hong] Republican U.S. Representative Nick Begich (닉 베기치) proposed setting a target of about 5 percent of total supply for a U.S. strategic bitcoin reserve.

On May 26 (local time), blockchain media outlet CoinPost reported that Begich outlined the idea in a recent interview with Fox Business and stressed that related legislation should be processed within about six months, before the midterm elections.

Begich is a co-sponsor of the strategic bitcoin reserve bill, the American Reserve Modernization Act (ARMA). He based the 5 percent target on it being similar to the U.S. share of global gold holdings. He said digital assets should be seen like gold reserves in the 21st century. He described a bitcoin reserve as a “new Fort Knox,” likening it to U.S. gold depositories.

The 5 percent figure is not included in the current draft of the bill at this time. The official bill text is expected to be released this week, and whether the target is reflected in the provisions has emerged as a key issue. Earlier drafts did not include a requirement discussed by some to buy 1 million BTC. They were reported to include a provision restricting sales of bitcoin held by the government for at least 20 years.

A funding method was also presented. Begich said he would make it a principle to structure it so taxpayers do not bear the burden. He cited an option to incorporate crypto seized by the Treasury under Iran sanctions, dubbed Operation Economic Fury, into the U.S. balance sheet. The U.S. Treasury has frozen about 80 billion yen worth of Iran-related cryptocurrency.

He also issued a warning on the legislative deadline. Begich sees the current political landscape, with Republicans controlling both chambers, as lasting only about six months until the November 2026 midterm elections. He said he was concerned the bill could drift if that window is missed. That is the backdrop to the strategic bitcoin reserve debate emerging as an agenda item tied to the political calendar, beyond simple asset holdings.

The issue of expanding access to the U.S. Federal Reserve (Fed) is also being discussed. U.S. President Donald Trump signed an executive order on May 19 directing a comprehensive review of expanding the granting of Fed master accounts to crypto firms and fintech companies. After Kraken secured a master account in March as the first crypto company to do so, other companies are demanding the same access.

Against this backdrop, the bitcoin reserve bill is increasingly likely to be discussed along three axes: the size of the reserve, sources of funding and access to mainstream finance. The next points to watch are whether the official bill text to be released this week includes the 5 percent target and how specific the plan to use seized cryptocurrency becomes.