A groundbreaking proposal suggests the United States government could significantly expand its Bitcoin strategic reserve by leveraging a massive, unallocated surplus from trade tariff receipts. The idea, put forward by Adam Livingston, author of “The Bitcoin Age and The Great Harvest,” presents a budget-neutral pathway for the U.S. to increase its holdings of the world’s leading digital currency.
Tapping into a River of Gold: The Tariff Surplus Plan
According to Livingston, the U.S. is experiencing an unprecedented surge in customs duties, creating a substantial financial surplus that is currently unassigned.
“As of July, we’ve collected $135.7 billion in customs duties — double last year’s pace,” Livingston stated. “Let me repeat that we’re sitting on a $70 billion surplus from tariffs, and we haven’t even finished the fiscal year.”
Livingston’s proposal is specific and strategic. He advocates for funneling a portion of this monthly surplus into acquiring Bitcoin. Crucially, this BTC would be placed in secure, cold storage with strict conditions: it could not be traded, staked, sold, rehypothecated, or used to fund programs or secure loans. The sole purpose would be to build a long-term, inert strategic reserve for the nation.
“That surplus is unallocated. It’s not pre-spent. It’s not tied to Medicare, entitlements, or debt service. It’s just floating, waiting, looking for a productive use case,” Livingston continued, highlighting the unique opportunity this “floating” capital presents.
A Budget-Neutral Path to Bitcoin Adoption
This proposal is particularly timely as it aligns with reported government directives. Under a hypothetical executive order from US President Trump, any additional Bitcoin acquisitions for the strategic reserve must be accomplished through “budget-neutral” strategies. Funding these purchases with an existing surplus, rather than new spending or debt, would perfectly meet this requirement. This makes the tariff surplus a politically and fiscally viable option for bolstering the nation’s digital asset holdings.
Mixed Signals: The Treasury’s Cautious Stance
Despite the clear logic of the proposal, the official government position appears to be in flux. In a recent interview with Fox Business, United States Treasury Secretary Scott Bessent initially poured cold water on the idea of direct purchases.
“We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” Bessent said, indicating a preference for growing the reserve through seizures rather than open-market acquisitions.
However, in a significant clarification later the same day, Bessent backpedaled, confirming that the U.S. government is still actively “exploring budget-neutral pathways” to accrue more of the digital currency. This reversal suggests that while direct market buys might face hurdles, the door remains open for creative, fiscally sound acquisition methods like the one Livingston proposed.
Beyond Tariffs: Other Pathways to a Larger BTC Reserve
Livingston’s tariff idea is one of several budget-neutral strategies being discussed. Another prominent proposal involves revaluing the Treasury’s vast gold holdings. Currently, the U.S. prices its gold reserves at an archaic statutory rate of just $42.22 per troy ounce, while the spot market price for gold is approximately $3,335 per ounce. Adjusting this valuation to reflect market reality would unlock a monumental amount of capital on the nation’s balance sheet, which could then be used to acquire BTC without new spending.
Other potential avenues include:
Reallocating existing reserve assets.
Selling a portion of the Strategic Petroleum Reserve and using the proceeds to purchase Bitcoin.
As the United States navigates its evolving digital asset strategy, the debate over how to best build a strategic Bitcoin reserve is intensifying. While the Treasury’s official stance remains cautious, innovative, budget-neutral proposals like utilizing the tariff surplus offer a compelling path forward. The financial world now watches to see if the world’s largest economy will make a landmark move into the digital frontier, funded by the very trade it seeks to regulate.
