The U.S. Looks to Increase Bitcoin Reserves Without Tax Money: What Options Are Under Consideration?
Washington, D.C. – March 6, 2025 marked a major turning point in U.S. digital asset policy when an executive order established the Strategic Bitcoin Reserve (SBR) – an effort to place Bitcoin in a national reserve, similar to gold. However, the order came with a crucial provision: prohibiting the federal government from purchasing additional bitcoin with taxpayer money or selling existing BTC.
Since then, U.S. officials have been looking for “budget-neutral” options to expand Bitcoin holdings. In a recent interview with Anthony Pompliano – CEO of Professional Capital Management – Bo Hines, Chairman of the Presidential Advisory Council on Digital Assets, revealed two of the options under serious consideration.
Two Standout Options: Bitcoin Act and Gold Certificate Revaluation
1. Bitcoin Act
Hines highlighted the Bitcoin Act, introduced by Sen. Cynthia Lummis and Rep. Nick Begich on March 11. The bill proposes to officially recognize Bitcoin as a national strategic asset and require the government to purchase 1 million BTC over five years, entirely through budget-neutral means.
Two specific proposals are outlined in the bill:
Transferring profits from the Federal Reserve.
Revaluing gold certificates, which are currently valued at a legal tender value of just $42.20 per ounce, while the actual market price has exceeded $3,000 per ounce.
2. Gold Certificate Revaluation
Hines said the Treasury could issue new gold certificates that reflect the actual market price, creating “additional funding” without going through Congress. Although criticized as an “accounting gimmick” by some experts like Craig Hemke, this strategy could generate trillions of dollars to buy BTC without increasing the real deficit – since every dollar of assets generated has a corresponding debt.
Notably, a weaker dollar – a likely outcome of this strategy – fits the Trump administration’s vision of boosting exports and re-industrializing the domestic economy. At the same time, rising inflation typically results in stronger performance for Bitcoin.
Option Three: Tariff Revenues
Another option is to tap into tariff revenues. Hines reveals that a blanket 10% import tax could generate $2.2 trillion over nine years; a 20% tariff could raise as much as $3.4 trillion, although the risk of a negative macroeconomic backlash could undermine its effectiveness.
At Bitcoin’s current price, buying 1 million BTC would require less than $1 trillion – making tariff revenue a viable option.
Other Ideas on the Table
Hines stressed that “no stone is left unturned”. Some other notable proposals include:
1. BitBonds – Bitcoin Bonds
Introduced by the Bitcoin Policy Institute, BitBonds is a financial instrument where the government issues bonds that pay 1% interest in USD, while the capital raised is used to buy more BTC. The plan is to have 90% of the capital go to government spending, with the remaining 10% going to Bitcoin.
2. Selling Exchange Stabilization Fund Surplus and Special Drawing Rights (SDRs)
This accounting method is similar to a gold revaluation, without the need for congressional approval. According to estimates, this could provide $39–40 billion to invest in Bitcoin.
The Issue of Auditing Existing BTC Reserves
The US government is believed to currently hold around 200,000 BTC – mostly from seizures in criminal cases. However, since the SBR order was issued, there has been no official confirmation of an audit of the digital assets. The delay in the audit has led some observers to criticize the lack of transparency, including Pompliano, who was said to have “dodged the question” in an interview with Hines.
Conclusion
The creation of a Strategic Bitcoin Reserve is not only a financial move, but also a geopolitical one – as world powers jockey for position in a new monetary order. While tax dollars are not an option, the US government is actively looking for creative solutions, from revaluing traditional assets to issuing new debt instruments.
If the plan succeeds, the United States could become the world's largest holder of Bitcoin without paying a single tax dollar – and reshape the future of the digital currency on a global scale.
