Legislative Path Preferred for US Bitcoin Reserve Expansion

Creating a permanent US strategic Bitcoin reserve would require congressional legislation rather than executive orders, according to VanEck's digital assets lead Matthew Sigel. Speaking at Bitcoin 2025 in Las Vegas, Sigel proposed incorporating Bitcoin mining incentives into budget reconciliation processes as the most viable approach.

Mining Incentives Proposed as Key Mechanism

The strategy involves amending budget legislation to offer tax credits for mining operations utilizing methane gas, while requiring miners to contribute portions of newly minted BTC to federal reserves. Sigel emphasized this would enable organic reserve growth while avoiding legal challenges that often accompany executive actions.

——"Executive orders invite lawsuits, especially for amounts exceeding $100 million," Sigel noted, suggesting initial testing through the Exchange Stabilization Fund——

Alternative Approaches Emerge Among Policymakers

Wyoming Senator Cynthia Lummis advocates converting Treasury gold certificates to Bitcoin, a budget-neutral method that wouldn't burden taxpayers. This follows her 2024 legislative proposal for establishing a Bitcoin reserve.

Bo Hines of the President's Digital Assets Council recently supported revaluing US gold holdings — currently priced at 【$42.22】 per ounce — to free up funds for Bitcoin purchases. Gold's April peak of 【$3,500】 per ounce presents potential conversion opportunities despite May's slight dip to 【$3,300】.

Current Reserve Constraints and Opportunities

The existing US Bitcoin Strategic Reserve, created by March 2025 executive order, holds nearly 【200,000 BTC】 but faces acquisition limitations. Government purchases must either be budget-neutral or originate from asset forfeitures, prompting creative solutions from various stakeholders.

As debate continues, the convergence of cryptocurrency policy and traditional fiscal mechanisms signals growing institutional recognition of Bitcoin's strategic importance. The coming congressional sessions may determine whether legislative or executive approaches ultimately prevail in shaping America's digital asset reserves.