VanEck's Sigel Advocates Gradual Legislative Growth for US Bitcoin Reserve

Matthew Sigel, the head of digital assets at VanEck, has suggested that the sustainable growth of the US Strategic Bitcoin Reserve should be achieved through gradual legislative approaches rather than executive actions. Speaking at Bitcoin 2025, Sigel emphasized the need for targeted legislation to build a permanent reserve. He proposed inserting Bitcoin mining incentives into the congressional budget reconciliation process as a viable path forward. These incentives could include tax credits for mining companies that utilize methane gas and other measures aimed at encouraging miners to share a portion of their mined Bitcoin with the federal government. Sigel argued that this approach would allow the reserve to grow organically over time, avoiding the legal challenges that executive actions might face.

Sigel highlighted the limitations of executive actions, noting that any significant expenditure over $100 million would likely prompt lawsuits. He suggested starting with a smaller allocation, possibly within the Exchange Stabilization Fund, to test the waters. The US Bitcoin Strategic Reserve was established by President Donald Trump through an executive order in March 2024, which stipulated that the government could only acquire Bitcoin through budget-neutral strategies or asset forfeiture. This has sparked various ideas on how to expand the government’s stockpile of nearly 200,000 BTC.

Lawmakers and officials have proposed different strategies to grow the strategic Bitcoin reserve. Senator Cynthia Lummis suggested converting a portion of the gold certificates held by the US Treasury to Bitcoin. This approach would allow the government to purchase more Bitcoin without incurring additional costs to taxpayers. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, echoed this idea. Hines proposed revaluing the US Treasury’s gold holdings and converting a portion of those gains to Bitcoin. This strategy would also be budget-neutral, according to Hines.

While the potential for a Bitcoin reserve presents exciting opportunities, the path is fraught with challenges. Legislative approval and public consensus are needed to move forward. The contrasting approaches — whether through incentivization of miners or asset revaluation — illustrate the dynamic nature of this ongoing discussion. The ambitious prospect of a US Bitcoin strategic reserve underscores the critical intersection of cryptocurrency and regulatory frameworks. With lawmakers considering various paths forward, the evolution of US digital asset policy could have profound implications for future fiscal strategies. As Matthew Sigel aptly noted, gradual and sustainable growth through legislation is essential, paving the way for a more cohesive approach to integrating Bitcoin within government assets.