BPI issues a policy statement calling for US leadership in Bitcoin infrastructure development.
On May 21, the Bitcoin Policy Institute (BPI) unveiled a detailed 21-page framework aimed at establishing the United States as a frontrunner in the Bitcoin (BTC) landscape.
Zack Shapiro, who leads policy at BPI and crafted the framework, referred to it as his “Bitcoin Policy Manifesto.” This document presents a comprehensive overview of legislative and regulatory strategies addressing Bitcoin as a financial asset, a software protocol, and concerning its mining infrastructure.
The proposed framework advocates for a triad of strategies: incorporating Bitcoin into the United States’ economic and geopolitical agendas, providing legal clarity for tech developers and businesses, and rethinking Bitcoin mining policies within the context of energy and infrastructure.
According to Shapiro, the document serves as a succinct yet thorough reference for policymakers looking to grasp the essential legal, regulatory, and geopolitical aspects of Bitcoin in a brief reading session.
Integration with capital markets and strategic reserves
A pivotal suggestion in the framework is the creation of a US Strategic Bitcoin Reserve (SBR), inspired by historical examples of gold and oil reserves.
BPI contended that Bitcoin’s inherent scarcity, neutrality, and transportability position it as a robust safeguard against inflation and geopolitical risks—attributes essential for reserve assets.
The framework proposes the introduction of “BitBonds,” which would enhance Treasury bonds with Bitcoin, designating part of the returns for Bitcoin acquisition. BPI’s analysis indicates that this could potentially decrease federal borrowing costs while reinforcing dollar-linked assets.
The report also supports regulatory updates to encourage the development of Bitcoin capital markets within the US, which would align with the reserve initiative. Suggestions include establishing fair-value accounting for Bitcoin, authorizing Bitcoin ETFs backed by actual holdings, and eliminating capital gains tax for minor transactions.
Legal differentiation for non-custodial technologies
BPI highlights the necessity for a distinct legal classification between custodial and non-custodial technologies within innovation and regulatory frameworks.
The report advocates for the enactment of safe-harbor legislation, like the Blockchain Regulatory Certainty Act, to ensure that developers of non-custodial software are not categorized as money transmitters.
This encompasses technologies such as Lightning routing nodes, Chaumian mints, and decentralized finance (DeFi) protocols. Moreover, it urges the Justice Department to cease ongoing prosecutions of developers working on Bitcoin privacy solutions.
The report also suggests implementing a consolidated federal money transmission license to streamline and replace state-by-state registration, along with proposing a sandbox framework that would allow emerging custodial businesses to function under less stringent compliance protocols.
Mining incentives and energy policy
In the energy sector, BPI advocates for positioning Bitcoin mining as a strategic asset for enhancing grid reliability and integrating clean energy sources.
The report encourages policymakers to recognize the potential of Bitcoin mining as a demand-response resource and to incentivize the use of flared gas for on-site mining to mitigate methane emissions.
It also calls for a technology-agnostic approach in federal energy policy and suggests co-locating mining facilities with AI and data centers to optimize energy distribution.
Bitcoin mining is presented as an auxiliary load that can support energy grids, utilize excess renewable generation, and justify necessary upgrades to transmission infrastructure.
BPI positions mining as a catalyst for innovation and investment in the US energy sector, advocating against preferential treatment or specific limitations.
Post Comment