The Bitcoin Policy Institute (BPI) has released a 30-page model bill designed to let US state treasuries treat BTC as a strategic reserve asset, codifying everything from multisignature custody to tax-advantaged economic zones. Titled the “State-Level Strategic Bitcoin Reserve Toolkit,” the document arrives amid growing institutional adoption of the asset class and lays out a path for states to “diversify treasury holdings, hedge against currency debasement, and enhance long-term fiscal stability,” a goal the authors describe as a “paradigm shift in monetary technology”.
Section 5 imposes a real-time Proof-of-Reserves regime: the treasury must publish cryptographic signatures, wallet addresses and balance updates “within one hour of any material change,” giving the public continuous on-chain insight into state coffers. Biennial reports must supplement the on-chain data with cost basis, performance analysis and incident disclosures. Oversight is anchored by a seven-member Strategic Bitcoin Reserve Advisory Committee that includes representatives from the governor, legislature, pension system, academia and the banking sector. The legislative audit division retains authority to probe the program at least once every three years.
Beyond balance-sheet diversification, the bill ventures into industrial policy. It authorizes Bitcoin Tax-Advantaged Zones offering capital-gains exemptions, sales-tax relief on mining hardware and payroll-tax rebates for firms deriving at least 60 percent of revenue from BTC activity . Mining itself is framed as an emissions-mitigation tool: state agencies are instructed to target stranded energy, flare-gas capture and renewable-grid balancing, with at least five percent of mining proceeds flowing into a dedicated conservation fund.
The drafters envision an aggressive rollout. Within 90 days of enactment a treasury would have to complete its first purchase; full operational capacity—including custody infrastructure, insurance and reporting systems—must be reached within 120 days. Continuous disaster-recovery drills and cyber-incident protocols underpin the reserve’s security architecture.
At press time, BTC traded at $111,111.
