VanEck Proposes Mining Royalties to Replenish US Bitcoin Strategic Reserve Without Hitting Budget
VanEck's head of digital asset research Matthew Siegel has called on US lawmakers to impose royalties on domestic bitcoin (BTC) mining so that the federal government can accumulate BTC for its strategic reserve.
Speaking on a policy panel at the Bitcoin Conference 2025 in Las Vegas on May 27, Siegel said he believes the reserve could grow through two main channels.
He explained that one option is an executive action that points to the Exchange Stabilization Fund as a vehicle for an initial $100 million allocation. However, Siegel cautioned that any larger purchase “will be challenged by the Elizabeth Warrens of the world.”
On the other hand, a second and more reliable path involves embedding funding provisions into the annual congressional budget reconciliation process, which requires only 51 votes in the Senate.
Siegel told the audience that in addition to direct allocations, Congress should “make small changes to every bill” to require miners to transfer a portion of their block rewards to the Treasury.
His comments come amid intense discussions about creating a tax-neutral method of funding the BTC reserve following President Donald Trump's March 6 executive order creating the Bitcoin Strategic Reserve and Digital Asset Reserve.
The order directs Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to expand federal assets without additional cost to taxpayers.
Mining Royalty System
Mining royalties would be adequate because the coins would come from miners, not taxpayers, Siegel said.
He pitched the idea as a way to “clean up the environment and accumulate bitcoins at the same time,” arguing that miners who convert methane waste into electricity deserve tax breaks while Washington gets royalties.
Under the scheme, energy producers who burn or emit methane could set up mobile data centers, funnel the gas into generators, and collect block rewards tax-free. Miners would send an agreed-upon percentage — Siegel suggested specific figures — directly to the Treasury’s reserve wallet.
The model reduces greenhouse gas emissions and diversifies national reserves without federal spending, Siegel said. He also noted that pilot programs could help clarify royalty rates and compliance rules.
Legislative roadmap
Siegel called on bipartisan co-sponsors to include royalty provisions in the energy, defense and appropriations bills.
He cited federal royalties on oil and gas production as a precedent for introducing additional tax surcharges on production revenues.
He also called on state officials who regulate gas flaring to speed up the permitting process for mining companies that have signed federal contracts to pay royalties, similar to existing tax breaks for data centers and renewable energy projects.
In closing, Siegel noted that quick legislative work could allow the U.S. to “accumulate tax benefits” within current fiscal constraints and build up reserves for the next budget cycle.
Source: cryptonews.net
