The Bitcoin Policy Institute (BPI) has unveiled a groundbreaking 21-page policy framework aimed at positioning the United States as a global leader in the Bitcoin (BTC) ecosystem. This comprehensive document, authored by BPI head of policy Zack Shapiro, has been dubbed the “Bitcoin Policy Manifesto” and covers a wide range of legislative and regulatory approaches to maximize the potential of Bitcoin in the US.
The framework presented by BPI proposes a three-pronged strategy to integrate Bitcoin into the US economic and geopolitical landscape. This strategy includes incorporating Bitcoin into the country’s economic and geopolitical strategy, providing legal clarity for technology developers and businesses, and redefining Bitcoin mining within energy and infrastructure policy.
One of the key recommendations put forth in the framework is the establishment of a US Strategic Bitcoin Reserve (SBR), inspired by the historical stockpiling of assets like gold or oil. BPI argues that Bitcoin’s scarcity, neutrality, and portability make it an ideal hedge against inflation and geopolitical instability, qualities essential in reserve assets. Additionally, the framework suggests the issuance of “BitBonds,” which are Bitcoin-enhanced Treasury bonds that allocate a portion of proceeds to Bitcoin purchases. This mechanism could potentially reduce federal interest costs while bolstering dollar-based assets.
Furthermore, the framework advocates for policy updates to support US-based Bitcoin capital markets, including the implementation of fair-value accounting standards for Bitcoin holdings, approval of in-kind spot Bitcoin ETFs, and exemption of low-value transactions from capital gains tax.
In terms of legal clarity, BPI emphasizes the importance of distinguishing between custodial and non-custodial technology in the legal and innovation space. The framework calls for the passage of safe-harbor legislation to prevent developers of non-custodial software from being regulated as money transmitters. This includes technologies such as Lightning routing nodes, Chaumian mints, and DeFi protocols. The report also urges the Department of Justice to cease current prosecutions against developers of privacy-focused Bitcoin tools.
On the energy front, BPI recommends treating Bitcoin mining as a strategic tool for grid stability and clean energy integration. The framework encourages policymakers to view Bitcoin mining as a demand-response asset and incentivize methane mitigation through flared gas on-site mining. Additionally, the report suggests a technology-neutral approach in federal energy policy and proposes the co-location of mining operations with AI and data center infrastructure to optimize load distribution.
Overall, the Bitcoin Policy Institute’s policy framework offers a comprehensive roadmap for policymakers to navigate the legal, regulatory, and geopolitical dimensions of Bitcoin. By implementing these recommendations, the US could solidify its position as a global leader in the Bitcoin ecosystem.