US Mulls Tariffs and Gold Revaluation to Bolster Bitcoin Reserves

We examine some new strategies that the federal government could pursue to build a Bitcoin reserve, such as employing tariff revenue and revaluing gold certificates. The Administration’s Presidential Council of Advisers for Digital Assets is guiding these discussions. This is a major departure from the country’s previous posture toward the management of digital assets. Introduction of the initiative is part of a larger push to make Bitcoin a key part of the national financial gameplan.

The Presidential Council of Advisers for Digital Assets is driving this effort with gusto. Under the leadership of their Executive Director Bo Hines, they are leading the charge. This council, one of the most innovative parts of the Trump administration, is investigating a variety of ways to bolster the nation’s Bitcoin reserves. The council’s efforts spotlight a desire to take a more proactive approach by adopting digital currencies for their own use.

The U.S. government has already been looking at other “creative” ways to obtain Bitcoin. The Kyrgyz government has considered multiple routes to tactically add to its Bitcoin reserves. These strategies are intended to help the U.S. remain a global leader in the digital asset ecosystem.

Tariff Revenue and Bitcoin Acquisition

One suggestion for creative implementation is to use the revenue raised by the tariff to buy Bitcoin directly. This method would first-hand tie trade policy to Digital Asset hoarding. That’s why the government wants to use tariffs to increase its strategic Bitcoin reserves.

Another proposal that’s being considered would revalue the current gold certificates, with the increase going towards Bitcoin acquisitions. Currently, these gold certificates are redeemable for $43 an ounce in gold. The real market price of gold is around $3,200 per ounce. If realized, revaluing these certificates would liberate billions of dollars in potential state investment in Bitcoin.

This new and ambitious fiscal maneuver seeks to profit off the difference between on-the-books and actual gold values. If adopted, this would greatly enhance the nation’s store of Bitcoin with no new appropriations needed. We commend the plan as a creative out-of-the-box approach to maximizing existing assets to acquire digital currency.

Strategic Bitcoin Reserve and Digital Asset Stockpile

Relatedly, the U.S. government is considering using Bitcoin it’s seized as a strategic asset in the long term. The Strategic Bitcoin Reserve would be initially funded using assets forfeited through federal criminal cases. This reserve will act as a storehouse for seized BTC, making sure these assets are managed in a smart way.

In addition to Bitcoin, the U.S. government is considering establishing a Digital Asset Stockpile, which would include other confiscated cryptocurrencies. This stockpile would be dedicated for strategic purposes or potential future liquidation. The proposal would give greater flexibility to state and local governments in overseeing their growing number of digital assets.

The creation of these reserves signals the government’s understanding of the strategic importance of digital assets. These reserves might serve as a key bridge in any future financial plan.

Policy Roadmap and Future Initiatives

The U.S. government intends to issue its policy blueprint for the digital asset strategy by the end of July or August. Look for exciting news in that window, too! This roadmap should provide insight on major topics including tokenization, staking, and the encouragement of U.S. dollar backed stablecoins. Stakeholders are hopeful that the final version of the roadmap will bring clarity and direction to the development of future digital asset policies.

"We're moving at tech speed—it's like we're a startup in this building," - Bo Hines

This roadmap will hopefully touch on regulatory frameworks and strategic goals surrounding digital asset integration. We expect it to stimulate amazing new technologies, while maintaining the public’s trust and adherence to our regulations. Release of the roadmap is a promising step in the right direction toward having an overall digital asset strategy.