The Bitcoin Policy Institute (BPI) released its 21-page policy framework on May 21, positioning the United States as the global leader in the Bitcoin (BTC) ecosystem.
The BPI head of Policy Zack Shapiro, author of the framework, called it His “Bitcoin Policy Manifesto.” This document outlines a comprehensive legislative and regulatory approach that touches Bitcoin as a financial asset, software protocol and mining infrastructure.
The framework proposes three approaches: integrating Bitcoin into the US economic and geopolitical strategies, adjusting the legal clarity of technology developers and companies, and redefining Bitcoin mining within energy and infrastructure policies.
Shapiro said the paper is a concise yet complete guide for policymakers seeking to understand the key legal, regulatory and geopolitical aspects of Bitcoin within 30 minutes of reading.
Integration of strategic reserves and capital markets
One of the framework’s central recommendations is the creation of the US Strategic Bitcoin Reserve (SBR), modeled on historical gold or oil reserves.
BPI argued that Bitcoin’s shortage, neutrality, and portability are strong hedges against the inflation and geopolitical instability required for reserve assets.
This framework highlighted how the US is doing. You may issue “Bitbonds” Or Bitcoin-enhanced financial debt that devotes its revenue to the purchase of Bitcoin. BPI modeling suggests that this mechanism could potentially reduce federal interest costs while strengthening dollar-based assets.
The report approved an update to its policy to nurture a US-based Bitcoin capital market to complement the preliminary proposal. These include finalizing Bitcoin Holding’s fair value accounting standards, approval of spot Bitcoin ETFs in physical form, and exemption from low value transactions from capital gains tax.
Legal distinctions of non-legal tools
BPI highlights a clear distinction between custody and non-obligatory technologies in legal and innovative domains.
This report will ensure that non-mandatory software developers are not restricted as senders and receivers in order to pass safe harbor laws, such as the Blockchain Regulations Certification Act.
This includes lightning bolts, butterfly mint, and defi protocols. moreover, The document urged the Department of Justice to remove current prosecutions against developers of privacy-focused Bitcoin tools.
The report also proposed a unified federal money submission license to replace state-by-state registration requirements, allowing emerging custody businesses to operate under a scaled compliance framework, with supporters of the sandboxing regime.
Energy Policy and Mining Incentives
In terms of energy, BPI recommends treating Bitcoin mining as a strategic tool for grid stability and clean energy integration.
The report encouraged policymakers to recognize Bitcoin mining as a demand-responsive asset and encourage methane mitigation through flare gas on-site mining.
It also recommended a technology-neutral attitude in federal energy policy and proposed co-location mining operations with AI and data center infrastructure to optimize load distribution.
Bitcoin mining is portrayed as a complementary load that can stabilize the energy grid, absorb excess renewable generation, and justify upgrades in transmission capacity.
BPI has deployed mining to drive innovation and investment in the US energy market without prioritization of treatments or targeted restrictions.
