- VanEck’s Matthew Siegel says Congress, not executive orders, must lead Bitcoin reserve efforts.
- Mining incentives, including tax relief for using waste energy, could help grow reserves sustainably.
- Alternative suggestions include converting Treasury gold certificates into Bitcoin.
As the United States moves towards building a strategic Bitcoin reserve, it will be Congress – not executive action – that drives the effort forward, according to VanEck’s Digital Assets Lead, Matthew Siegel.
Siegel laid out a clear legislative roadmap for Bitcoin accumulation at the Bitcoin 2025 conference in Las Vegas. He urged lawmakers to insert Bitcoin mining measures to gradually expand federal Bitcoin holdings into the Congressional budget reconciliation process.
The suggestion follows President Donald Trump’s March 2025 executive order that created a Strategic Bitcoin Reserve and a Digital Asset stockpile. The order restricts the Treasury and Commerce Departments from expanding holdings without new taxpayer spending – sparking creative proposals on how to grow the government’s stockpile of nearly 200,000 BTC.
Related: Arizona Governor Vetoes Bill Allowing Crypto Investments for State Funds
Paths to Creating a Strategic Bitcoin Reserve
US Senator Cynthia Lummis proposed a more traditional financial strategy in July 2024 that involves converting a portion of the gold certificates held by the US Treasury into Bitcoin. This idea was also backed and expanded on by Bo Hines, the Executive Director of the President’s Council of Advisors on Digital Assets earlier this year, who suggested revaluing the Treasury’s gold holdings – still priced at US$42.22 (AU$62.55) per ounce – to reflect the current market value and using the gains to purchase Bitcoin.
In contrast, Siegel proposes a royalty system where Bitcoin miners would contribute a small share of mined Bitcoin to a federal reserve wallet in exchange for tax relief. The idea centers on offering tax credits to mining companies that use otherwise wasted energy sources – particularly flared or vented methane gas – to power their operations. This would enable these companies to not only reduce greenhouse gas emissions but to also qualify for incentives such as income tax exemptions or deductions while allowing the government’s strategic Bitcoin reserve to grow without new taxpayer spending.
If implemented, these proposals could set a precedent for integrating digital assets into national reserves, offering both fiscal and environmental benefits while strategically positioning the US in the evolving global crypto economy.
Related: Bitcoin Breaks Away from Gold as Investors Pivot to Crypto, JPMorgan Finds
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