Bitcoin Policy Institute Proposes US Strategic Bitcoin Reserve

The Bitcoin Policy Institute (BPI) has released a comprehensive 21-page policy framework aimed at positioning the US as a global leader in the Bitcoin (BTC) ecosystem. The document, authored by BPI head of policy Zack Shapiro, is titled the “Bitcoin Policy Manifesto.” It outlines a detailed legislative and regulatory approach that addresses Bitcoin as a financial asset, software protocol, and mining infrastructure.

The framework proposes a three-pronged strategy: integrating Bitcoin into the US economic and geopolitical strategy, providing legal clarity for technology developers and businesses, and redefining Bitcoin mining within energy and infrastructure policy. Shapiro emphasized that the paper serves as a concise guide for policymakers to understand the primary legal, regulatory, and geopolitical dimensions of Bitcoin within a short reading time.

One of the central recommendations is the establishment of a US Strategic Bitcoin Reserve (SBR), modeled on historical stockpiling of gold or oil. BPI argues that Bitcoin’s scarcity, neutrality, and portability make it a strong hedge against inflation and geopolitical instability, traits required of reserve assets. The framework also suggests issuing “BitBonds,” or Bitcoin-enhanced Treasury bonds, that dedicate a portion of proceeds to bitcoin purchases. BPI modeling suggests this mechanism could lower federal interest costs while strengthening dollar-based assets.

The report endorses policy updates to foster US-based Bitcoin capital markets to complement the reserve proposal. These include finalizing fair-value accounting standards for bitcoin holdings, approving in-kind spot Bitcoin ETFs, and exempting low-value transactions from capital gains tax.

BPI emphasizes a clear distinction between custodial and non-custodial technology in the legal and innovation domain. The report calls for the passage of safe-harbor legislation, such as the Blockchain Regulatory Certainty Act, to prevent developers of non-custodial software from being regulated as money transmitters. This includes Lightning routing nodes, Chaumian mints, and DeFi protocols. Additionally, the documents urged the Department of Justice to drop current prosecutions against developers of privacy-focused Bitcoin tools.

The report also proposed a unified federal money transmission license to replace state-by-state registration requirements and advocates for a sandbox regime allowing emerging custodial businesses to operate under scaled compliance frameworks.

On the energy front, BPI recommends treating Bitcoin mining as a strategic tool for grid stability and clean energy integration. The report encourages policymakers to recognize Bitcoin mining as a demand-response asset and incentivize methane mitigation through flared gas on-site mining. It also recommends a technology-neutral stance in federal energy policy and proposes co-locating mining operations with AI and data center infrastructure to optimize load distribution. Bitcoin mining is portrayed as a complementary load that can stabilize energy grids, absorb surplus renewable generation, and justify upgrades to transmission capacity. BPI positioned mining to drive innovation and investment in US energy markets without preferential treatment or targeted restrictions.