According to Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, the US government is looking at budget-neutral ways to buy Bitcoin, based on recent reports. In an interview with investor Anthony Pompliano at the White House, Hines said top-level discussions are underway to find legal, non-inflationary ways for the government to start buying Bitcoin, with tariff revenue and gold reserve revaluation at the top of the list.
Bitcoin Without Debt: Budget-Neutral Paths Gain Traction
During the White House interview, Hines said any government Bitcoin acquisition must not increase the deficit. “We’re looking at creative, budget-neutral approaches,” he said, noting a growing internal consensus across departments like Commerce, Treasury and the President’s Economic Council. Those agencies are now reportedly working together through an interagency task force to figure out how to put Bitcoin into the US asset framework without burdening taxpayers or reshuffling existing priorities.
One of the most advanced proposals is in the Bitcoin Reserve Act led by Senator Cynthia Lummis. The bill would unlock dormant capital by revaluing the US Treasury’s stockpile of gold certificates. Those certificates are valued at an outdated $42.22 per ounce, while gold is now trading above $3,200 per ounce. Adjusting that valuation could free up tens of billions in non-debt capital, capital that lawmakers propose could be used for digital reserves like Bitcoin.
Hines said the administration is tracking the bill and expects more momentum if Lummis gets more co-sponsors. But he stressed this isn’t the only way. “There are many ways to do this,” he said, indicating the administration’s digital asset task force is casting a wide net for solutions.
Tariff Revenue as a Funding Source
In addition to asset revaluation, the administration is also looking at tariff revenue as an unusual but potential source of Bitcoin funding. Hines said, at this time of increasing geopolitical tensions and economic nationalism, particularly with regards to US–China relations, tariffs have become a bigger part of federal income.
Instead of letting that revenue get folded back into general spending, policymakers are exploring whether future collections can be an external funding source for Bitcoin purchases.
“We’re not just moving money from one government account to another. This is about bringing in new money and applying it strategically,” he said.
Constitutional and Legal Issues Under Review
While the appetite for sovereign Bitcoin accumulation is growing, constitutional and statutory questions remain. Any use of tariff revenues or revalued Treasury assets for crypto acquisition must comply with the Federal Reserve Act, the Gold Reserve Act of 1934 and federal budgetary rules. The GAO and CBO will be reviewing any proposed implementations.
There are concerns about volatility. Although Bitcoin is increasingly seen as a store of value, its price swings are a problem for institutions used to stable, fiat-based asset models. But Hines seemed optimistic.
“The accounting, the compliance, the mechanisms; these are solvable problems,” he said. “The biggest problem is political will, not design.”
Conclusion: A Global Race for Digital Reserve Leadership
As countries like El Salvador and the UAE are experimenting with Bitcoin-based monetary systems, the US government is under pressure to respond. Financial strategists say delaying a federal Bitcoin reserve strategy will mean losing geopolitical influence as digital assets become the foundation of next-gen trade and finance.
China is already piloting the digital yuan and Russia is using Bitcoin mining to get around sanctions. Against this backdrop, Hines and others in the administration are saying the US government needs to get ahead of the curve and do it in a way that protects taxpayers and the constitution.
Whether through gold revaluation or tariff revenue, the US government is gearing up for a formal Bitcoin acquisition framework. No official roadmap has been released but the tone and depth of Hines’ comments suggest behind closed doors the question is no longer if the government will buy Bitcoin but how and when.
Glossary
Bitcoin Reserve Act: A bill to allow the U.S. Treasury to revalue its gold reserves and use the surplus to buy digital assets.
Gold Certificate: A paper certificate representing a claim to gold; U.S. gold certificates are still valued at outdated rates on government ledgers.
Tariff Revenue: Income the federal government collects from imported goods, often used as a policy tool in trade disputes.
Strategic Reserve Asset: A financial asset held by a country to support its monetary system or hedge against economic volatility.
Budget Neutrality: A policy approach where new spending or acquisitions do not increase the national debt or budget deficit.
FAQs
Is the US government really going to buy Bitcoin?
Reports divulge that federal agencies are exploring ‘budget-neutral ways to buy Bitcoin, including using tariff revenue and revalued gold certificates.
What is the Bitcoin Reserve Act of 2025?
A bill introduced by ‘Senator Cynthia Lummis to revalue U.S. Treasury gold certificates to fund digital asset reserves.
Can tariff revenue be used to buy Bitcoin legally?
Being considered. Would require new policy and potentially new legislation but being looked at as a legal external revenue source.
Why is Bitcoin a strategic reserve?
Fixed supply, resistant to inflation, decentralized, a hedge against monetary manipulation and geopolitical risks.
Who is involved?
Commerce, Treasury, the President’s Council of Advisers on Digital Assets, and legislative sponsors.
Sources
Disclaimer:
This article is for informational purposes only and not financial advice. Cryptocurrency investments are risky, kindly do your own research.
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