The Bitcoin Policy Institute (BPI) released a 21-page policy framework on May 21 to position the US as a global leader in the Bitcoin (BTC) ecosystem.
BPI head of policy Zack Shapiro, the author of the framework, called it his “Bitcoin Policy Manifesto.” The document outlines a comprehensive legislative and regulatory approach that touches on Bitcoin as a financial asset, software protocol, and mining infrastructure.
The framework proposes a three-pronged approach: integrating Bitcoin into the US economic and geopolitical strategy, tailoring legal clarity for technology developers and businesses, and redefining Bitcoin mining within energy and infrastructure policy.
Shapiro stated that the paper is a concise yet complete guide for policymakers seeking to understand the primary legal, regulatory, and geopolitical dimensions of Bitcoin within half an hour of reading.
Strategic reserve and capital markets integration
One of the framework’s central recommendations is the establishment of a US Strategic Bitcoin Reserve (SBR), modeled on historical stockpiling of gold or oil.
BPI argued that Bitcoin’s scarcity, neutrality, and portability make it a strong hedge against inflation and geopolitical instability, traits required of reserve assets.
The framework also highlighted how the US could issue “BitBonds,” or Bitcoin-enhanced Treasury bonds, that dedicate a portion of proceeds to bitcoin purchases. BPI modeling suggests this mechanism could lower federal interest costs while strengthening dollar-based assets.
The report endorsed policy updates to foster US-based Bitcoin capital markets to complement the reserve proposal. These include finalizing fair-value accounting standards for bitcoin holdings, approving in-kind spot Bitcoin ETFs, and exempting low-value transactions from capital gains tax.
Legal distinction for non-custodial tools
BPI emphasizes a clear distinction between custodial and non-custodial technology in the legal and innovation domain.
The report calls for the passage of safe-harbor legislation, such as the Blockchain Regulatory Certainty Act, to prevent developers of non-custodial software from being regulated as money transmitters.
This includes Lightning routing nodes, Chaumian mints, and DeFi protocols. Additionally, the documents urged the Department of Justice to drop current prosecutions against developers of privacy-focused Bitcoin tools.
The report also proposed a unified federal money transmission license to replace state-by-state registration requirements and advocates for a sandbox regime allowing emerging custodial businesses to operate under scaled compliance frameworks.
Energy policy and mining incentives
On the energy front, 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-response asset and incentivize methane mitigation through flared gas on-site mining.
It also recommended a technology-neutral stance in federal energy policy and proposes co-locating mining operations with AI and data center infrastructure to optimize load distribution.
Bitcoin mining is portrayed as a complementary load that can stabilize energy grids, absorb surplus renewable generation, and justify upgrades to transmission capacity.
BPI positioned mining to drive innovation and investment in US energy markets without preferential treatment or targeted restrictions.
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