Trump Tariff Revenues To Fund US Bitcoin Reserve

According to Bo Hines, the executive director of the Presidential Council of Advisers on Digital Assets, the Trump administration could consider using tariff revenues to build a national Bitcoin reserve.

The Trump administration could use tariff revenues to build a national Bitcoin (BTC) reserve, according to the executive director of the Presidential Council of Advisers on Digital Assets, Bo Hines.

This marks a notable shift from recent indications that revenue generated from gold sales would help fund the Bitcoin reserve.

Trump Tariff Revenues To Fund US Bitcoin Reserve

Hines explained the possibility during recent interviews. He cited the urgency for the US to move quickly amid global competition to accumulate Bitcoin.

Speaking to Thinking Crypto on Tuesday, Hines asserted that the US must compete globally in Bitcoin and that the creation of a Strategic Bitcoin Reserve (SBR) is being done through budget-neutral means. This includes novel funding mechanisms such as tariff revenues.

“SBR recognizes the value of what Bitcoin is and how it can be harnessed for the American people. There is a finite number of Bitcoin and I think there will end up being a race to accumulate,” Hines stated.

He further elaborated on the administration's thinking, noting that tariffs are being re-evaluated as part of a broader macroeconomic strategy.

“The strategic reserve is just the beginning. We’re thinking long-term about what assets can empower the American people and insulate us from global shocks,” said Hines in an interview with Professional Capital Management founder and CEO Anthony Pompliano.

This plan differs from what Republican Senator Cynthia Lummis of Wyoming proposed. BeInCrypto reported that she introduced legislation to increase the government’s Bitcoin holdings by selling a portion of the Federal Reserve’s gold.

“We will convert excess reserves at our 12 Federal Reserve banks into bitcoin over five years. We have the money now,” Senator Lummis said at the Bitcoin 2024 Conference in July.

The prospect of using tariff revenue to buy Bitcoin is new. However, such a move could fundamentally redefine the role of digital assets in the US economic strategy. It signals a broader ideological pivot, viewing digital assets not merely as speculative instruments but as national economic tools.

Crypto advocates responded enthusiastically, with influencer Crypto Rover calling the tariff-based Bitcoin acquisition plan “mega bullish.”

However, some experts caution that the policy may backfire. Founder of Cardano, Charles Hoskinson, questioned the effectiveness of tariffs, warning that future government-imposed taxes on crypto will be futile.

Meanwhile, others warn that Trump’s aggressive tariff stance could ultimately undermine US Bitcoin mining dominance. Hardware costs and international trade barriers may hinder domestic miners, especially if Chinese-made mining equipment faces further taxation or import restrictions.

Despite these complexities, the administration appears focused.

Hines also hinted at integrating stablecoin legislation and blockchain technology within banking infrastructure, aiming to bolster law enforcement capabilities in crypto.

This signals a multi-pronged strategy to navigate the evolving landscape of digital assets, which are increasingly viewed through the prism of national interest and economic competitiveness.

Hines’s comments come amid broader financial shifts. Reports suggest the Trump administration is considering replacing Federal Reserve Chair Jerome Powell.

As inflation pressures mount and trade tensions with China escalate, speculation is that a more crypto-friendly Fed chair could align monetary policy more closely with the administration’s digital asset goals.

With geopolitical tensions rising and central banks racing to define their digital currency strategies, the US appears to be moving toward a more assertive position in the global financial arena.

According to BeInCrypto data, Bitcoin was trading at $85,465 at the time of writing, exhibiting a modest 1.09% surge over the last 24 hours.