Why the US Might Turn Tariffs Into Bitcoin: Surprising Ways to Fund the Strategic Reserve!

On March 6, 2025, the U.S. Government, in an audacious move that made some people double-check their calendars, officially launched the U.S. Strategic Bitcoin Reserve (SBR). Yet, as dramatic as this sounds, there’s a twist — it strictly prohibits buying bitcoins with the taxpayer’s cash or selling the ones already in its coffers. So the burning question remains: how on earth will the U.S. amass more of the shiny crypto-currency? Spoiler alert: the answers are… a bit odd.

In a curious little chat with Professional Capital Management’s bigwig Anthony Pompliano, Bo Hines, President of the Presidential Council of Advisors for Digital Assets, dropped a couple of tantalizing hints on how the U.S. might ramp up its BTC stash. Buckle up; we’re about to delve into this digital treasure hunt!

What did Hines say? Let’s unpack it.

What Hines said?

So, on April 14, 2025, an internet clip surfaced showing Hines talking about the fine art of Bitcoin acquisition. Notably, he mentioned two feasible methods that have apparently been tossing around Capitol Hill like hotcakes. Is the U.S. finally ready to make digital money a national treasure?

Hines first dropped the bombshell that Senator Cynthia Lummis’ Bitcoin Act has “taken the community by storm” (cue dramatic music). Apparently, this act is making its way through Congress with hopes of co-sponsors jumping on the bandwagon.

The Bitcoin Act was introduced on March 11 by Lummis and Rep. Nick Begich. It outlines a grand vision: the U.S. should acquire 1 million bitcoins within five years—without any hit to taxpayers. And how do they plan to do that? Oh, just a simple little trick involving the Federal Reserve’s spare change and revaluing gold certificates. Easy, right?

Hines highlighted the “gold certificate revaluation” method. You see, the U.S. Treasury is still clinging to an outdated $43 per ounce for gold certificates, even though gold is now worth over $3,000 an ounce. No worries! The Treasury Secretary can just adjust the certificates to match the market price, and voilà! Suddenly, there’s “extra funding” to scoop up some more bitcoins. Isn’t finance just fun?

Of course, some critics are skeptical, calling it a mere “accounting gimmick” — a creative way to generate a trillion dollars out of thin air without affecting the current balance sheet. But then again, the current administration might just be thrilled about a weaker dollar, especially when it comes to boosting exports and enticing manufacturers back home. If inflation happens to spike, so be it — Bitcoin tends to do well in those times. It’s like a cosmic joke.

But wait, there’s more! Hines also mentioned a wildcard method: tariff revenues. According to the Tax Foundation, a 10% universal tariff could rake in a tidy $2.2 trillion over nine years. A 20% tariff? A cool $3.4 trillion. Not bad, right? Sure, there may be some nasty side effects, but hey, you can’t make an omelet without cracking a few eggs… or billions of dollars.

Considering the current BTC price, acquiring 1 million bitcoins would require a lot less than a trillion dollars, so the tariff revenue and gold revaluation options seem to be doable. And, surprise, surprise: there are plenty more ways to fund the SBR. Hines hinted that “no stone is unturned,” which basically means that the list of options is growing faster than your email spam folder.

“Everything’s on the table. And like we’ve said, we want as much as we can get. So we’re going to make sure that no stone is unturned as we start fleshing out some of these processes.”

Other options

But wait, there’s more fun! Other experts have offered even wilder ideas, including Bitcoin bonds, affectionately known as BitBonds. These bonds would pay investors a modest 1% annual interest in cold, hard USD, while 90% of the funds raised would go straight to the government. The other 10%? Well, you guessed it — it’ll be used to buy more Bitcoin. So you can invest in bonds and help Uncle Sam get richer. Sounds like a win-win, right?

Another option? The Exchange Stabilization Fund surplus. No need for Congress approval here — just a little accounting sleight of hand. Selling this surplus could bring in between $39 and $40 billion, all ready to be spent on Bitcoin without any dramatic fanfare. Call it “crypto-philanthropy” if you will.

Accounting issues

Now, a little hiccup: the U.S. has roughly 200,000 bitcoins on hand, thanks to a few well-timed seizures. But where’s the official audit? The SBR was supposed to have its Bitcoin tally figured out within 30 days of its launch, but as of now, we’re still in the dark. Maybe Bo’s too busy plotting his next big move, or perhaps Pompliano just forgot to ask about the audit during the interview. Either way, the crypto lobbyists are clearly chomping at the bit for the U.S. to get its act together.

Pompliano’s been getting a lot of flak online for his “softball” interview, with some critics accusing him of being a puppet of the Trump administration. But who’s really surprised? It’s politics and crypto, after all. Expect the drama to unfold like the next episode of a binge-worthy show.

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2025-04-16 13:08