VanEck proposes mining royalty to fill US strategic Bitcoin reserve in a budget-neutral approach
VanEck head of digital belongings analysis Matthew Sigel referred to as on US lawmakers to connect a royalty to home Bitcoin (BTC) mining so the federal authorities can accumulate BTC for its strategic reserve.
Talking throughout a coverage panel on the 2025 Bitcoin Convention in Las Vegas on Could 27, Sigel stated the reserve can develop by means of two essential channels in his perspective.
He defined that one possibility is govt motion, which factors to the Trade Stabilization Fund as a car for an preliminary $100 million allocation. Nevertheless, Sigel warned that any bigger buy “is gonna get sued by the Elizabeth Warrens of the world.”
In the meantime, the second and extra sturdy path would contain inserting funding language into Congress’s annual budget-reconciliation course of, which requires solely 51 votes within the Senate.
Past direct allocations, Sigel instructed the viewers that Congress ought to “put small amendments in each invoice” requiring miners to switch a slice of block rewards to the Treasury.
His remarks come amid heightened discussions about making a tax-neutral method to fund a BTC reserve after President Donald Trump’s March 6 govt order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
The order directs Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to increase federal holdings with out new taxpayer spending.
Mining-royalty system
In accordance with Sigel, mining royalties would fulfill the mandate as a result of miners, not taxpayers, would provide the cash.
He framed the thought as a method to “clear up the surroundings and accumulate a Bitcoin stack on the identical time,” arguing that miners who convert waste methane into electrical energy deserve tax reduction whereas Washington receives a royalty.
Beneath this define, power producers that flare or vent methane may set up cell data-center rigs, route the fuel into mills, and earn block rewards freed from revenue tax. Miners would ahead an agreed-upon proportion, Sigel urged single digits, on to the Treasury’s reserve pockets.
In accordance with Sigel, the mannequin reduces greenhouse fuel emissions and diversifies nationwide reserves with out federal outlays. He additional argued that pilot applications may refine royalty charges and compliance guidelines.
Legislative street map
Sigel referred to as for bipartisan co-sponsors to embed royalty language in power, protection, and appropriations payments.
He cited federal oil-and-gas royalties as precedent for attaching income riders to extraction actions.
He additionally urged state officers who regulate flaring to speed up permits for miners that signal federal royalty contracts, mirroring current tax holidays for knowledge facilities and renewable-power initiatives.
Sigel closed by saying swift legislative work may let the US “stack sats” inside present fiscal limits and place the reserve for the following price range cycle.
