Tuesday, January, 21, 2025

Trump Administration Eyes Bitcoin Reserve Strategy Without Taxpayer Dollars

The Trump administration plans to build a U.S. Bitcoin reserve using tariff revenues and revalued gold certificates, aiming to lead the global crypto economy without taxpayer funds.
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Zagham Abbas

Zagham is a renowned crypto journalist known for his insightful analysis and in-depth reporting on the cryptocurrency industry.
  • The Trump administration is exploring ways to build a U.S. Bitcoin reserve without taxpayer money, including using tariff revenues and revaluing gold certificates.
  • The Treasury could revalue its outdated gold certificates from $43 to $3,200 per ounce, generating a surplus that funds Bitcoin purchases without increasing national debt.
  • The Strategic Bitcoin Reserve will initially include digital assets seized in government criminal cases, with future expansion using creative, budget-neutral methods.

The Trump administration is exploring bold and unconventional strategies to build a substantial U.S. Bitcoin reserve without relying on taxpayer funds. According to Bo Hines, executive director of the Presidential Council of Advisers for Digital Assets, the White House is considering multiple creative methods, including utilizing tariff revenues and revaluing the government’s outdated gold certificates.

In an April 14 interview with Professional Capital Management CEO Anthony Pompliano, Hines detailed the administration’s efforts to secure Bitcoin through innovative, budget-neutral tactics. He emphasized that America must move quickly if it wants to lead the global crypto economy.

“We’re looking at many creative ways, whether it be from tariffs there are countless ways in which you can do this,” Hines said during the interview.

One of the most striking proposals under review involves the U.S. The Treasury still values its gold certificates at a historical rate of $43 per ounce. If revalued to match the current market price of approximately $3,200 per ounce, the Treasury could generate a paper surplus. The surplus would then direct funds toward purchasing Bitcoin—without selling any physical gold or increasing national debt.

“Everything is on the table, and like we’ve said, we want as much [Bitcoin] as we can get,” Hines added. “We’re going to make sure that no stone is unturned.”

The initial foundation of the Strategic Bitcoin Reserve will consist of digital assets seized in government criminal cases. Over time, however, the administration plans to expand the reserve using revenue-neutral financial engineering, aiming to accumulate Bitcoin without adding to the federal budget.

Bitcoin Policy Push as Trump Finalizes Framework

In addition to the reserve strategy, the Trump administration is finalizing a comprehensive digital asset policy framework. Scheduled for release between late July and August, the report will outline the United States’ crypto policy priorities including Bitcoin, stablecoins, tokenization, staking, and other blockchain innovations.

“It’ll provide clarity on many aspects of this space,” Hines said. “We’re moving at tech speed; it’s like we’re a startup in this building.”

The framework is expected to support the global expansion of U.S. dollar-backed stablecoins. It will signal a strong commitment to positioning America as the global leader in both crypto adoption and dollar-based digital finance.

Despite the administration’s rapid push into digital assets, controversy continues to swirl around the official TRUMP memecoin. Critics, including House Representative Gerald E. Connolly, have called the token a “money grab,” pointing out that Trump-affiliated entities earned over $100 million in trading fees.

Bitcoin Backlash as Waters Slams Trump Memecoin Move

Representative Maxine Waters also criticized the project, calling it a “rug pull” and a poor reflection of crypto’s potential. Meanwhile, White House crypto czar David Sacks attempted to downplay the controversy, referring to the memecoin as nothing more than a political collectible.

They did not ask Hines to address the memecoin or the Trump family’s business ties to World Liberty Financial, another crypto-related venture that has raised concerns about conflicts of interest.

Additionally, there has been no update on whether the U.S. completed its internal audit of federal Bitcoin holdings, a task required within 30 days of President Trump’s March 6 executive order establishing the Bitcoin reserve.

As global competition over crypto regulation and adoption heats up, the Trump administration is taking bold steps to keep the U.S. ahead, reimagining legacy assets like gold to support digital currency acquisitions.

This unprecedented strategy signals a clear intent: to position America as the leader of the crypto revolution. While questions about political and ethical implications remain, the direction is unmistakable. “This is about making America the crypto capital of the world,” Hines said. “And we’re just getting started.”

Related | XRP Price Surges 28% as Ripple SWIFT Partnership Rumors Grow

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