Trump Eyes Tariff Cash to Build U.S. Bitcoin Reserve

Bitcoin, Tariffs, and a New National Strategy

The Trump administration is reportedly exploring a groundbreaking plan: using trade tariff revenue to build a national Bitcoin reserve. The idea is spearheaded by Bo Hines, Executive Director of the Presidential Council of Advisers on Digital Assets, who aims to position the U.S. as a global leader in Bitcoin accumulation amid growing international competition. In a conversation on Thinking Crypto, Hines explained that the goal is to create a strategic BTC reserve through budget-neutral methods, tapping into alternative funding routes like tariff income rather than relying on traditional taxpayer dollars. This would mark a major departure from older suggestions like Senator Cynthia Lummis’ proposal to sell portions of the Federal Reserve’s gold to fund crypto purchases. Instead, Hines stressed a more forward-looking strategy.

“We’re facing a silent race for Bitcoin, and the U.S. cannot afford to fall behind,” Hines told investor Anthony Pompliano in a separate conversation.

The Bigger Vision: From Gold to Bitcoin

The Trump administration’s plan reflects a broader ambition to redefine the United States’ financial foundation. Hines views Bitcoin as a tool for economic resilience, especially in the face of global shocks and inflation. With Bitcoin’s finite supply, early accumulation becomes a key geoeconomic strategy. However, the plan has its critics. Charles Hoskinson, founder of Cardano, raised concerns, warning that the use of tariffs to fund BTC could backfire. He also cast doubt on the effectiveness of future government efforts to tax the crypto sector, calling them potentially flawed or insufficient.

Tariff Risks: Trouble for U.S. Miners?

While the vision is bold, it could also bring unintended consequences—especially for the Bitcoin mining sector. Critics argue that higher tariffs on imported electronic equipment, particularly from China, could drive up hardware costs for U.S.-based mining operations. That could weaken America’s edge in crypto mining and shift hash power abroad.

Blockchain and Stablecoins in the Banking System

Despite these risks, the Trump team is thinking bigger. Hines hinted at an upcoming legislative push to integrate stablecoins and blockchain technology into the U.S. banking infrastructure. The vision includes building systems focused on security, traceability, and institutional trust—a shift that could align digital assets more closely with mainstream financial regulation.

This comes amid speculation about a potential replacement for Federal Reserve Chair Jerome Powell and rising inflation, further fueling arguments for a diversified, crypto-integrated financial future. Hines framed the initiative not as a tech experiment, but a mission for financial sovereignty: making Bitcoin a cornerstone of national security and stability, not just a speculative play.