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Crypto Prune > Mining > Vanek proposes mining royalties to fill US strategic Bitcoin reserves in a budget-neutral way
Mining

Vanek proposes mining royalties to fill US strategic Bitcoin reserves in a budget-neutral way

6 months ago 3 Min Read

Matthew Sigel, head of digital asset research, called on US lawmakers to attach royalty to domestic Bitcoin (BTC) mining, allowing the federal government to accumulate BTC for strategic preparation.

During the policy panel at the 2025 Bitcoin Conference held in Las Vegas on May 27, Siegel said the reserve could grow through two major channels in his perspective.

He explained that one option is executive action, referring to the Exchange Stabilization Fund as a means of allocation of the first $100 million. But Shigeru warned that Large-scale purchases are “sues sued by the world’s Elizabeth Warrens.”

Meanwhile, the second, more durable pathway involves inserting funding into the Congressional annual budget adjustment process, which requires only 51 votes in the Senate.

Beyond direct allocation, Sigel told the audience that Congress should “make minor amendments to all bills.”

His remarks come amid a high-level debate on creating tax-neutral methods to fund BTC reserves after President Donald Trump’s March 6 executive order established strategic Bitcoin reserves and digital asset stockpile.

The order directs Treasury Secretary Scott Bescent and Commerce Secretary Howard Luttonick to expand federal holdings without new taxpayer spending.

Mining loyalty system

According to Sigel, mining royalties will meet the power of attorney as miners rather than taxpayers will supply the coin.

He framed the idea as a way to “clean the environment and accumulate a Bitcoin stack at the same time,” claiming that miners who convert waste methane into electricity while Washington receives royalty are worthy of tax easing.

Under this outline, energy producers who flare or vent methane can install mobile data center rigs, route gas to generators, and earn income tax-free block rewards. Miners will forward the agreed proportions, Sigel proposed single digits directly to the Ministry of Finance’s reserve wallet.

See also  Top 10 miners dominate 94% of hashrate and store over 55,000 BTC

According to Sigel, the model reduces greenhouse gas emissions and diversifies national reserves without federal spending. He further argued that the pilot program could improve royalty rates and compliance rules.

Legislative Roadmap

Sigel asked its bipartisan co-sponsors to embed royalty language in its energy, defense and spending bills.

He cited federal oil and gas royalties as a precedent for attaching revenue riders to their extraction activities.

He also urges state officials to regulate flaring to accelerate permission for miners to sign federal royalty agreements, reflecting existing tax holidays for data centers and renewable power projects.

Sigel has been closed saying that rapid legislative work will allow the US to allow “STACK SAT” within current fiscal restrictions and place reserves for the next budget cycle.

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