Thomas Daniels
A new proposal suggests the U.S. government could build a Bitcoin strategic reserve using surplus funds generated by trade tariffs. The plan involves secure, geographically distributed cold storage systems with multi-signature access, proof-of-reserves, and strict budget limitations.
Adam Livingston, author of The Bitcoin Age and The Great Harvest, argues that the government has already collected $135.7 billion in customs duties this fiscal year—nearly double last year’s pace—resulting in a $70 billion unallocated surplus. According to Livingston, these funds are not earmarked for Medicare, entitlements, or debt service, and therefore present an ideal opportunity for productive allocation.
His proposal calls for a portion of this surplus to be funneled into Bitcoin (BTC), stored in cold wallets and excluded from trading, staking, lending, or any yield-generating strategies.
This would comply with an executive order issued under President Trump, which mandates that any additional government Bitcoin purchases must be budget-neutral.
However, U.S. Treasury Secretary Scott Bessent initially stated that the government does not plan to acquire new BTC, instead focusing on confiscated digital assets for the existing reserve. Later the same day, he clarified that budget-neutral options for increasing Bitcoin holdings remain under review.
Alternative strategies discussed include revaluing the Treasury’s gold reserves, currently priced at $42.22 per troy ounce despite a market rate above $3,300, and liquidating other federal assets, such as oil from the Strategic Petroleum Reserve, to finance further BTC acquisition.
