Bitcoin News Today: U.S. Considers Funding Bitcoin Reserve With $70 Billion Tariff Surplus

A recent proposal has sparked renewed interest in the U.S. government’s approach to Bitcoin, with author Adam Livingston suggesting that surplus trade tariff revenues should be allocated to build a strategic Bitcoin reserve. Livingston, in a recent article, argued that a portion of the monthly tariff surpluses—currently unallocated—could be used to acquire Bitcoin for secure, long-term cold storage, without it being traded, staked, or otherwise utilized for financial gain [1]. This strategy would align with President Donald Trump’s executive order mandating the creation of a strategic Bitcoin reserve, while also adhering to the requirement that any new acquisitions must be budget-neutral [1].

As of July 2025, the U.S. government had collected $135.7 billion in customs duties through the 2025 fiscal year, with a $70 billion surplus remaining unallocated [1]. Livingston emphasized that this surplus is not tied to existing federal spending commitments and therefore represents a viable and untapped resource for the acquisition of Bitcoin. He proposed that these funds be used to establish a sovereign digital asset reserve, which could serve as a long-term store of value and a hedge against inflation [1].

The idea has drawn mixed signals from officials. U.S. Treasury Secretary Scott Bessent initially stated that the government would not be purchasing new Bitcoin for the strategic reserve, instead relying on forfeited assets to grow the reserve. However, he later clarified that the Treasury remains open to exploring budget-neutral pathways to accumulate more Bitcoin [2]. These pathways could include reallocating existing assets, such as revaluing the government’s gold holdings or selling from the Strategic Petroleum Reserve [2].

The Trump administration has been actively shaping the policy landscape for Bitcoin. Earlier in August, Bo Hines, head of the White House’s Council of Advisors on Digital Assets, stepped down, raising questions about the administration’s ongoing commitment to the strategic Bitcoin reserve initiative [2]. Hines had been instrumental in guiding the development of the reserve, and his departure may signal a shift in leadership or strategy.

Market reactions have been mixed. Despite discussions around government acquisition, Bitcoin traded at around $118,000 late Thursday, down from a peak of $124,000 earlier in the day. Analysts attributed the decline to a stronger-than-expected Producer Price Index (PPI) report, which raised concerns about inflation and delayed expectations for Federal Reserve rate cuts in September [2]. These macroeconomic factors could impact the feasibility and timing of government purchases, as monetary policy plays a critical role in shaping investment environments.

The broader economic environment remains influenced by aggressive trade policies, including high tariffs, which have introduced volatility into global markets. These policies may also affect how the U.S. government evaluates the role of Bitcoin in its financial strategy, particularly if ongoing tariff collections continue to generate surplus revenues [6].

The concept of a national Bitcoin reserve is gaining traction among digital asset advocates. Edan Yago, co-founder of BitcoinOS, has previously argued that such a reserve is an “inevitable” development as digital assets become more central to global finance [3]. However, the current government remains cautious, focusing on budget-neutral approaches rather than new purchases, indicating that any expansion of the reserve will need to be carefully managed to avoid increasing the federal deficit.

As discussions continue, the U.S. government’s approach to the Strategic Bitcoin Reserve is likely to evolve in response to market conditions, policy priorities, and geopolitical developments. The proposal to fund the reserve with tariff surpluses reflects a growing recognition of Bitcoin’s potential in a traditional fiscal framework, while also highlighting the complexities of integrating digital assets into national economic strategy.

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Source: [1] US should fund Bitcoin strategic reserve with tariff surplus – author [https://www.tradingview.com/news/cointelegraph:10cc49958094b:0-us-should-fund-bitcoin-strategic-reserve-with-tariff-surplus-author/](https://www.tradingview.com/news/cointelegraph:10cc49958094b:0-us-should-fund-bitcoin-strategic-reserve-with-tariff-surplus-author/)

[2] Scott Bessent Suggests Government Bitcoin Purchases Remain a Possibility [https://cryptoadventure.com/scott-bessent-suggests-government-bitcoin-purchases-remain-a-possibility/](https://cryptoadventure.com/scott-bessent-suggests-government-bitcoin-purchases-remain-a-possibility/)

[3] Bitcoin: News & Updates - Page 35 of 77 - CryptoDnes EN [https://cryptodnes.bg/en/tag/bitcoin/page/35/](https://cryptodnes.bg/en/tag/bitcoin/page/35/)

[6] Trump's Trade Policies and Iowa's Agricultural Crossroads [https://www.ainvest.com/news/trump-trade-policies-iowa-agricultural-crossroads-navigating-risks-opportunities-tariff-driven-era-2508/](https://www.ainvest.com/news/trump-trade-policies-iowa-agricultural-crossroads-navigating-risks-opportunities-tariff-driven-era-2508/)