Bitcoin News Today: U.S. Official Proposes 70 Billion Dollar Tariff Surplus to Fund Strategic Bitcoin Reserve

The U.S. government should consider funding a strategic Bitcoin reserve using surplus revenue from tariffs, according to author Adam Livingston. In a recent proposal, Livingston advocated for allocating up to $70 billion in untapped customs duties collected by U.S. Customs and Border Protection toward Bitcoin acquisitions [1][2]. These funds, currently not tied to entitlements or debt service, could be directed into geographically distributed, multi-signature cold storage wallets, ensuring the asset remains secure and inaccessible for trading or government programs [1].

The idea aligns with President Donald Trump’s executive order, which mandates that any additional Bitcoin for the reserve must be acquired through budget-neutral methods [2]. Livingston’s plan includes mechanisms such as proof-of-reserves reporting and strict custody controls, aiming to treat Bitcoin similarly to gold within the nation’s strategic asset portfolio [1]. The suggestion has drawn attention as part of a growing dialogue on how the U.S. can incorporate Bitcoin into its financial infrastructure [2].

U.S. Treasury Secretary Scott Bessent has been a key proponent of the strategic Bitcoin reserve initiative. Initially, he dismissed the idea of purchasing more Bitcoin, stating, “We’re not going to be buying that.” However, Bessent later clarified that the Treasury remains open to exploring budget-neutral pathways for expanding the reserve [3]. This nuanced stance suggests the administration is keeping the door open for innovative funding mechanisms, including the tariff surplus proposal [3].

Beyond tariff allocations, other analysts have suggested alternative budget-neutral strategies, such as revaluing the U.S. gold holdings—currently undervalued at $42.22 per troy ounce—or liquidating assets from the strategic petroleum reserve to fund Bitcoin purchases [1]. These options reflect a broader effort to expand the reserve without requiring new spending, a key priority under the executive order [2].

The U.S. strategic Bitcoin reserve, proposed in March, continues to generate debate and interest within policy and financial circles. While the government has not yet made new purchases, the evolving discussion underscores a growing recognition of Bitcoin’s potential as a long-term store of value and a tool for strategic financial planning [3].

Bitcoin’s price showed some volatility during the week, trading around $118,000 as of late Thursday, following a peak above $124,000 earlier in the day. The decline came amid strong Producer Price Index data, which raised concerns about the pace of inflation and the likelihood of a Federal Reserve rate cut in September [3].

The timing of these discussions is notable, as Bo Hines, who previously led the White House’s Council of Advisors on Digital Assets, has recently stepped down from his position. His departure may signal a shift in the administration’s approach to digital asset policy, including how the strategic Bitcoin reserve is developed and managed [3].

While institutional adoption of Bitcoin is increasing, challenges remain in terms of governance, regulation, and integration into existing financial systems. However, the ongoing discourse reflects a significant shift in how policymakers are evaluating Bitcoin—not just as a speculative asset, but as a potential strategic resource for the U.S. government [1][3].

Sources:

[1] Cointelegraph - [https://cointelegraph.com/news/us-fund-bitcoin-strategic-reserve-tariff-surplus](https://cointelegraph.com/news/us-fund-bitcoin-strategic-reserve-tariff-surplus)

[2] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-author-proposes-funding-bitcoin-reserve-70-billion-tariff-surplus-2508/](https://www.ainvest.com/news/bitcoin-news-today-author-proposes-funding-bitcoin-reserve-70-billion-tariff-surplus-2508/)

[3] Crypto Adventure - [https://cryptoadventure.com/scott-bessent-suggests-government-bitcoin-purchases-remain-a-possibility/](https://cryptoadventure.com/scott-bessent-suggests-government-bitcoin-purchases-remain-a-possibility/)