Laws move slower than markets. But they hit harder. This is issue #49 of The Bitcoin Act — your Tuesday and Sunday briefing on the legal and regulatory moves that actually shape Bitcoin.

Now for today’s top stories:

🏛️ Bipartisan ARMA Bitcoin Reserve Bill
Reps. Begich and Golden introduced the American Reserve Modernization Act on May 21 to create a Strategic Bitcoin Reserve.

📜 NY Plaintiff Claims 39,069 Dormant Bitcoin Wallets in Court
“Noah Doe” sued in New York Supreme Court May 1 claiming 39,069 dormant wallets holding ~3.79 million BTC under abandoned property law.

👀 SEC Approves Nasdaq Bitcoin Index Options
The SEC approved cash-settled Bitcoin index options on Nasdaq PHLX under ticker QBTC.

On May 21, 2026, Representatives Nick Begich (R-AK) and Jared Golden (D-ME) introduced the American Reserve Modernization Act of 2026 (ARMA), a bipartisan proposal to establish a Strategic Bitcoin Reserve inside the Treasury Department. The bill would consolidate all federally held Bitcoin acquired through seizures and forfeitures, require those holdings to remain locked for a minimum of 20 years, mandate quarterly public proof-of-reserve reports backed by independent third-party audits, and direct a formal study of budget-neutral methods to grow the reserve without raising taxes, issuing new debt, or increasing deficits. It also states that the federal government may not impair the lawful right of individuals to own, transfer, or self-custody digital assets.

If passed, the bill would lock all seized Bitcoin for 20 years (ending random executive auctions) and direct a formal study of budget-neutral ways to grow the reserve, no new taxes or debt. One concrete path under discussion: federal lands and waterways could monetize stranded energy (wasted methane, hydro, wind) through public-private Bitcoin mining contracts, where miners bid for access, mine BTC, and share proceeds with the Treasury: similar to how Bhutan uses surplus hydropower.

Begich.house.gov

On May 1, 2026, a plaintiff identified only as “Noah Doe” together with two Wyoming LLCs filed a First Amended Complaint in New York Supreme Court (index number 153119/2026) seeking a declaratory judgment that he owns 39,069 dormant Bitcoin wallets under New York Personal Property Law Article 7-B (the state's lost-and-found statute), a provision not traditionally applied to digital assets. The plaintiff claims he located the wallets with a proprietary algorithm, reported them to the NYPD, and conducted more than a year of documented on-chain notices and public outreach with no owner response. The wallets collectively hold roughly 3.79 million BTC according to on-chain analysis.

This changes nothing for your self-custodied sats because Bitcoin ownership is controlled exclusively by private keys, not court orders; no judge can magically spend coins without them. You cannot replicate the strategy yourself, most dormant addresses belong to long-lost keys held by early miners or Satoshi-era holders, and any attempt to claim someone else’s keys is outright theft under existing law. The case may clarify how traditional property rules apply to Bitcoin, but your posture remains unchanged: keep your seed phrases air-gapped, never reuse addresses, and treat every UTXO as yours alone.

TradingView

The SEC approved Nasdaq PHLX to list European-style, cash-settled options on the Nasdaq Bitcoin Index under ticker QBTC. The contracts are cash-settled only, no Bitcoin changes hands, and can be exercised only at expiration. Position limits are set at 24,000 contracts per side. Trading cannot begin until the CFTC grants exemptive relief, because Bitcoin is classified as a commodity under CFTC jurisdiction rather than a security.

For your day-to-day Bitcoin-only operations, this adds another institutional hedging tool that settles in dollars and never touches self-custody or spot Bitcoin. Liquidity in paper markets may tighten spreads and reduce volatility, but real Bitcoin stays sovereign in your hardware wallet. Keep running your own node, stacking sats directly, and ignore derivatives until the CFTC acts, your edge remains physical possession of the private keys.

Bitcoin.com

🇨🇳 US Forfeits 1 BTC from Chinese Drug Trafficker’s Binance Account
DOJ announced May 20, 2026 forfeiture of 1.00001188 BTC seized from Wei Gong’s Binance account 53514319 in a Savannah synthetic-drug case, traced via blockchain with Chinese authorities’ cooperation.

🇮🇷 WSJ: Binance Routed $850M for Iranian Sanctions Network
WSJ reported Babak Zanjani’s network moved $850 million through Binance over two years for Iran’s IRGC despite multiple internal compliance flags; Binance denied ongoing violations.

🇮🇷 FOX News Reports on Iran Accepting Bitcoin for Strait of Hormuz
FOX News reported Iran is accepting Bitcoin for ship insurance and transit fees through the Strait of Hormuz amid US tensions.

🇬🇭 Ghana Activates VASP Licensing for Bitcoin
Ghana implemented the Virtual Asset Service Providers Act, mandating licenses for all exchanges after more than 3 million citizens adopted crypto.

🇷🇼 Rwanda Mandates Licenses for All Crypto Exchanges
Rwanda’s Capital Markets Authority is finalizing mandatory licensing rules for exchanges and converters after Parliament passed the country’s first digital asset law.

🇪🇺 IG Expands Spot Bitcoin Trading Across Europe
London-listed IG partnered with MiCA-licensed Bitpanda in May 2026 to offer spot Bitcoin trading to EU clients, extending its UK retail launch from last year.

🇮🇩 Indonesia Bans Polymarket as Illegal Gambling
Indonesia blocked Polymarket on May 25, 2026, classifying prediction markets as illegal online gambling under local law.

🇿🇦 South Africa Treasury Leaks 300+ Emails on Bitcoin Rules
South Africa’s National Treasury exposed email addresses of over 300 citizens commenting on 2026 capital-flow rules that require Bitcoin holdings disclosure.

🇬🇪 Georgia Launches Lari-Backed Stablecoin with Tether
Tether and the Georgian government announced GELT, a lari-backed stablecoin, on May 25, 2026 under the country’s new digital asset framework.

🇧🇹 🇸🇻 Bhutan Moves 90 BTC; El Salvador Adds 8
Bhutan transferred 90 BTC worth $7 million to SegWit addresses this week after moving $237 million total while still holding $233 million; El Salvador added 8 BTC, now holding 7,661.37 BTC.

Every week I drop one concrete, actionable answer to a legal or political question that actually affects your life as a Bitcoiner, focused on a specific, real-world action you can take. No theory. No fluff. Just the move.

This week: Can merchants legally accept Bitcoin payments? Country-by-country rules for orange-pilling

Merchants keep asking the same question: is Bitcoin legal to accept as payment right now? Here are the exact answers for the six countries that matter most to Bitcoiners, in plain English, no lawyer talk. All facts verified from official government sources as of May 2026.

United States: Merchants can legally accept Bitcoin as payment with no federal restrictions or extra licenses. Bitcoin is treated as property, so the business records the USD fair-market value at the exact moment of sale as ordinary income. Standard FTC and state consumer-protection laws apply exactly the same as cash or card.

Switzerland: Merchants can legally accept Bitcoin as payment with no extra licenses or payment restrictions. Bitcoin is not legal tender but private transactions are fully allowed. The business records the fair-market value in CHF as taxable income. Swiss consumer-protection rules apply exactly the same as any other payment.

Indonesia: Merchants cannot legally accept Bitcoin as payment. The Currency Law (Law No. 7 of 2011) makes rupiah the only legal tender for goods and services. Bitcoin is legal to own and trade on licensed platforms, but direct use for payments violates the law. Tax and consumer rules do not apply to illegal payment use.

United Kingdom and Australia: Merchants can legally accept Bitcoin as payment in both countries with no local-currency requirement or special license. Bitcoin is not legal tender. In the UK the business reports the GBP fair-market value as a taxable disposal; in Australia the ATO requires the AUD value for income or capital-gains tax. Normal consumer laws apply fully.

Argentina: Merchants can legally accept Bitcoin as payment through private contracts with no local-currency mandate or extra license. Bitcoin is not legal tender. The business records the ARS equivalent as income under AFIP rules. Standard Argentine consumer-protection laws apply the same as peso transactions.

Got a legal or regulatory question you want answered next Tuesday? Hit reply and send your question.

📊 Clarity Act Signed into Law in 2026 — 60% Polymarket

📊 Trump will pardon Keonne Rodriguez — 44% Kalshi

📊 Trump will pardon Sam Bankman-Fried — 27% Kalshi

📊 Will the 2026 Billionaire Tax Act Pass in the California 2026 Election? — 34.12% Predyx

📊 Trump Eliminates Capital Gains Tax on Bitcoin in 2026 — 6% Polymarket

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