The United States may use tariff surpluses to buy Bitcoin! Experts suggest creating a BTC strategic reserve.

As U.S. tariff revenues hit a record high, Adam Livingston, author of "The Bitcoin Era and the Great Harvest," proposed a controversial suggestion—to convert part of the tariff surplus into a Bitcoin (BTC) strategic reserve. He believes that this fund could be held long-term through cold storage, without engaging in trading, staking, or lending, becoming an important cornerstone of the U.S. digital asset reserve. This move could become a viable way for the Trump administration to expand BTC holdings under the principle of "budget neutrality."

Tariff surpluses hit record levels, experts suggest converting to BTC strategic reserves

Livingston pointed out that by July of fiscal year 2025, the United States had collected approximately $135.7 billion in tariffs, nearly double that of the same period last year, and accumulated about $70 billion in surplus funds. He emphasized that this surplus "has not been pre-allocated and is unrelated to health insurance, welfare, or debt repayment," and can thus be used for long-term strategic investments.

His idea is to allocate a certain percentage of the tariff surplus each month to purchase BTC, and store it in a secure cold wallet, completely avoiding trading or leverage operations, to ensure the stability and safety of the assets.

Trump Administration's "Budget Neutral" Principle and Bitcoin Policy

According to President Trump's executive order, if the U.S. government wants to increase its Bitcoin reserves, it must adopt a "budget-neutral" strategy, meaning no additional fiscal burden is to be incurred.

Using the surplus from tariffs to purchase BTC perfectly meets this requirement, as this funding was not originally included in the established expenditure plan. This move not only enhances the strategic position of the United States in the digital asset space but may also become a long-term defense against inflation and currency devaluation.

US Treasury Secretary's Attitude Wavers as Government Continues to Explore Options

U.S. Treasury Secretary Bessent stated last Thursday that the government "will not purchase new Bitcoin as a strategic reserve," but later backtracked, saying that it is still "exploring budget-neutral ways" to accumulate more digital currencies.

Other proposals currently under discussion include:

1. Reassess Gold Reserves: The U.S. Treasury's gold is valued at $42.22 per troy ounce, far below the spot market price of approximately $3,335. If the valuation is adjusted, it will release a significant amount of potential funds.

2. Asset redistribution: Sell part of the Strategic Petroleum Reserve (SPR) in exchange for BTC.

3. The Potential Impact of Bitcoin as a National Strategic Reserve

If the United States adopts a strategy of using tariff surpluses to purchase BTC, it will become one of the first major economies in the world to directly accumulate digital assets through "trade surpluses." This could have multiple impacts:

1. Enhance Bitcoin's global status: The official holdings of the United States will further consolidate BTC as "digital gold."

2. Hedge against USD risk: Under high inflation and geopolitical uncertainty, BTC can serve as an alternative asset for part of foreign exchange reserves.

3. Trigger international follow-up: Other countries with large trade surpluses (such as Germany and Japan) may follow suit, promoting the internationalization process of Bitcoin.

Conclusion

Using tariff surpluses to purchase Bitcoin aligns with the Trump administration's principle of "budget neutrality" and can establish a long-term digital asset strategic reserve for the United States. Although the attitude of the Treasury Secretary remains wavering, as tariff revenues continue to rise, this idea may enter the core of policy discussions in the coming months. For the global crypto market, if the U.S. officially launches this plan, it could become a new catalyst for driving BTC prices and adoption.