The Bitcoin Coverage Institute (BPI) launched a 21-page coverage framework on Could 21 to place the US as a worldwide chief within the Bitcoin (BTC) ecosystem.
BPI head of coverage Zack Shapiro, the writer of the framework, known as it his “Bitcoin Coverage Manifesto.” The doc outlines a complete legislative and regulatory method that touches on Bitcoin as a monetary asset, software program protocol, and mining infrastructure.
The framework proposes a three-pronged method: integrating Bitcoin into the US financial and geopolitical technique, tailoring authorized readability for know-how builders and companies, and redefining Bitcoin mining inside power and infrastructure coverage.
Shapiro acknowledged that the paper is a concise but full information for policymakers in search of to know the first authorized, regulatory, and geopolitical dimensions of Bitcoin inside half an hour of studying.
Strategic reserve and capital markets integration
One of many framework’s central suggestions is the institution of a US Strategic Bitcoin Reserve (SBR), modeled on historic stockpiling of gold or oil.
BPI argued that Bitcoin’s shortage, neutrality, and portability make it a powerful hedge towards inflation and geopolitical instability, traits required of reserve belongings.
The framework additionally highlighted how the US may problem “BitBonds,” or Bitcoin-enhanced Treasury bonds, that dedicate a portion of proceeds to bitcoin purchases. BPI modeling suggests this mechanism may decrease federal curiosity prices whereas strengthening dollar-based belongings.
The report endorsed coverage updates to foster US-based Bitcoin capital markets to enhance the reserve proposal. These embody finalizing fair-value accounting requirements for bitcoin holdings, approving in-kind spot Bitcoin ETFs, and exempting low-value transactions from capital beneficial properties tax.
Authorized distinction for non-custodial instruments
BPI emphasizes a transparent distinction between custodial and non-custodial know-how within the authorized and innovation area.
The report requires the passage of safe-harbor laws, such because the Blockchain Regulatory Certainty Act, to forestall builders of non-custodial software program from being regulated as cash transmitters.
This contains Lightning routing nodes, Chaumian mints, and DeFi protocols. Moreover, the paperwork urged the Division of Justice to drop present prosecutions towards builders of privacy-focused Bitcoin instruments.
The report additionally proposed a unified federal cash transmission license to exchange state-by-state registration necessities and advocates for a sandbox regime permitting rising custodial companies to function below scaled compliance frameworks.
Power coverage and mining incentives
On the power entrance, BPI recommends treating Bitcoin mining as a strategic device for grid stability and clear power integration.
The report inspired policymakers to acknowledge Bitcoin mining as a demand-response asset and incentivize methane mitigation via flared fuel on-site mining.
It additionally really helpful a technology-neutral stance in federal power coverage and proposes co-locating mining operations with AI and knowledge middle infrastructure to optimize load distribution.
Bitcoin mining is portrayed as a complementary load that may stabilize power grids, take up surplus renewable era, and justify upgrades to transmission capability.
BPI positioned mining to drive innovation and funding in US power markets with out preferential remedy or focused restrictions.