Sigel Calls for Royalties on Miners to Achieve National Reserve Diversification
On May 27, Matthew Sigel, Head of Digital Asset Research at VanEck, proposed a concept during a policy panel discussion at the 2025 Bitcoin Conference, urging U.S. lawmakers to impose royalties on domestic Bitcoin (BTC) mining so that the federal government can accumulate BTC as part of its strategic reserves.
The concept also includes tax exemptions for miners using abandoned methane (new energy) in their operations, a proposal that not only helps clean the environment but also allows for the accumulation of Bitcoin.
Sigel pointed out that the federal government's Bitcoin reserves can grow through two main avenues. The first is to utilize the foreign exchange stabilization fund as a vehicle for an initial $100 million allocation, although he warned that any larger purchases could face legal challenges. The second way is to incorporate the corresponding funding terms into Congress's annual budget reconciliation process, which can pass with a simple majority of 51 votes in the Senate.
In addition to direct allocations, Sigel suggested that Congress should include small amendments in each bill requiring miners to transfer a portion of their block rewards to the Treasury. This discussion has intensified following President Donald Trump's executive order on March 6 to establish a strategic Bitcoin reserve and digital asset reserve.
Sigel advocates for imposing mining royalties on miners rather than taxing taxpayers. He also proposed that miners converting abandoned methane into electricity could receive tax breaks, allowing Washington State to gain royalty revenue. This model does not require additional federal investment, reducing carbon emissions while achieving national reserve diversification.
Sigel believes that this "tax break + revenue sharing" model continues the policy tilt towards the use of clean energy while achieving transparent fund transfers through blockchain technology.
To promote the implementation of this idea, Sigel calls for bipartisan lawmakers to include royalty provisions in energy, defense, and appropriation bills, using federal oil and gas royalty legislation as a precedent.
He also urged state governments to expedite the issuance of licenses to miners signing federal royalty contracts, enabling the U.S. to quickly accumulate strategic reserves within existing fiscal limits and prepare for the next budget cycle.
