David Sacks, the White House’s AI and cryptocurrency advisor, has proposed a potential strategy for the U.S. government to acquire Bitcoin without incurring additional taxes, increasing federal spending, or adding to the national debt.
This suggestion emerged during a public panel at the Bitcoin 2025 conference in Las Vegas on May 27. Sacks highlighted that there might be alternatives for Washington to start amassing a strategic Bitcoin reserve without the need to expand the federal balance sheet.
Sacks’ Proposal Gains Traction Amid Institutional Bitcoin Interest
As a senior advisor closely connected to the President and digital asset working groups, Sacks described his idea as “budget-neutral,” indicating that it would focus on reallocating current Treasury resources instead of introducing new expenditures.
His remarks were made in conjunction with those of leading figures from the Bitcoin sector on the first day of the three-day conference, which has already garnered significant media attention due to the appearance of Vice President JD Vance and members of the Trump family.
Sacks’ comments reflect the growing institutional interest in viewing Bitcoin as a treasury asset, a trend that resonated with several speakers throughout the event.
On the same day, it was reported that Trump Media had raised $2.5 billion to invest in Bitcoin, underscoring the engagement with digital assets from entities affiliated with both major U.S. political parties.
Trump Media is diving headfirst into crypto, raising $2.5 billion to build one of the biggest Bitcoin treasuries.#TrumpMedia #Bitcoin https://t.co/Fpfqth4KCA
— Finance Newso.com (@Finance Newso) May 27, 2025
During the panel discussion, Sacks also touched on preliminary talks regarding “bit bonds,” or Bitcoin-backed financial instruments, which might enable the federal government to gain exposure to BTC while adhering to existing fiscal boundaries.
While specifics remain unclear, this framing hints at potential creative financial strategies akin to those utilized by sovereign wealth funds or corporate treasuries.
Emerging Sovereign Bitcoin Strategies Inspired by El Salvador
The idea of establishing a U.S. sovereign Bitcoin reserve, once considered marginal, is now part of mainstream discourse. Sacks’ proposal, presented as “budget-neutral,” could offer a more politically acceptable foundation for discussions among Treasury and Congressional committees while distancing itself from the perception of increased public spending.
If adopted, this approach would mirror the strategies of countries like El Salvador and Bhutan, which have made Bitcoin acquisitions through internal asset reallocations rather than by accruing public debt.
El Salvador is particularly noteworthy for its unwavering commitment to Bitcoin, and remains under international scrutiny for its policies.
On Tuesday, the International Monetary Fund (IMF) announced a staff-level agreement with El Salvador as part of the first review of a $1.4 billion extended loan program.
The IMF says it will “ensure” El Salvador’s Bitcoin holdings remain unchanged as a condition for its $1.4b loan program, despite ongoing accumulation.#IMF #bitcoin https://t.co/yvuwmDylZ5
— Finance Newso.com (@Finance Newso) May 28, 2025
While the IMF has commended the nation’s macroeconomic stability and fiscal reform efforts, it stressed that El Salvador’s Bitcoin holdings should remain at current levels.
As a condition of the agreement, El Salvador has pledged to withdraw public sector involvement from the Chivo wallet, the government-operated Bitcoin payment application, by the end of July.
This follows comments from Economy Minister Maria Luisa Hayem made in April, reaffirming at the Web Summit in Rio de Janeiro that Bitcoin remains a central focus for the government.
Despite IMF stipulations, she indicated that the nation continues to accumulate Bitcoin.
Since the initial IMF agreement was established in December 2024, El Salvador has added at least 20 more BTC to its treasury.
As of May 2025, the country holds approximately 6,190 BTC, valued at around $675 million. With Bitcoin prices rallying in 2025, El Salvador now stands to benefit from over $350 million in unrealized gains, according to official data.
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