An Open Letter to Our Next U.S. President: Our BItcoin National Strategy & Executive Order

For the full commentary and supporting documents view my original Open Letter post here. An Open Letter to Our Next U.S. President:

The TL:DR draft of a proposed Day 1 Executive Order is here below in text
Draft Executive Order: Bitcoin Mining in Opportunity Zones

Summary:

This Executive Order stipulates that all Bitcoin mined within an Opportunity Zone Business or funded by a Qualified Opportunity Zone Fund is exempt from certain legal precedents and shall be marked to market per GAAP tax principles effective January 9, 2025. Additionally, it provides deferral and exemption from capital gains tax for specific investments in these zones, leveraging the bipartisan nature of the Opportunity Zone legislation. This action ensures the United States takes the lead in global financial innovation, aligning with strategic values such as personal liberty, free markets, and free speech.

Executive Order

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1. Policy

It is the policy of my Administration to promote economic growth, technological innovation, and the stabilization of energy markets within Opportunity Zones by incentivizing Bitcoin mining operations. Bitcoin, as the ultimate power-projection protocol, will be harnessed to maintain American leadership in the global economic order, driving forward national values of personal liberty, free markets, and free speech.

Section 2. Definitions

For the purpose of this order:

  • “Bitcoin Mining” refers to the process of creating new bitcoins by solving computational problems.

  • “Opportunity Zones” refers to economically distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment, as designated by the Tax Cuts and Jobs Act of 2017.

  • “Qualified Opportunity Zone Fund” refers to any investment vehicle organized to invest in Opportunity Zone property.

Section 3. Exemptions and Tax Treatment

(a) Effective January 9, 2025, all Bitcoin mined within an Opportunity Zone Business or funded by a Qualified Opportunity Zone Fund shall be exempt from any conflicting legal precedents.

(b) These Bitcoin assets shall be marked to market in accordance with Generally Accepted Accounting Principles (GAAP) for tax purposes.

Section 4. Retroactive Benefits

(a) Any existing business or Qualified Opportunity Zone Fund holding Bitcoin mined since January 1, 2019, and retaining such assets on its balance sheet for a full ten-year period, shall be retroactively exempt from capital gains tax on the appreciation of these Bitcoin assets.

Section 5. Investment Incentives

(a) Investors rolling over capital gains from the sale of any asset into a Qualified Opportunity Zone Fund or Qualified Opportunity Zone Business that mines Bitcoin shall receive:

i. A deferral on their capital gains tax for seven years if the investment is made between January 9, 2025, and December 31, 2025, along with a 15% step-up in basis.

ii. A deferral on their capital gains tax for five years if the investment is made between January 1, 2026, and December 31, 2026, along with a 10% step-up in basis.

(b) After a holding period of ten years, any assets and distributions from such funds or businesses shall be free from any capital gains tax.

Section 6. General Provisions

(a) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(b) Nothing in this order shall be construed to impair or otherwise affect:

i. The authority granted by law to an executive department, agency, or the head thereof; or

ii. The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Section 7. Effective Date

This order shall take effect on January 9, 2025.

Signed by:

The 47th President of the United States of America


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This paired with an Energy & Manufacturing policy that create energy hubs in opportunity zones that gives cheap power access to high energy demand businesses.

Further adding in Bitcoin mining for load balancing and heat capture.

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Exactly right. And when affordable housing projects are started they often subsidize the energy transformer development initially for the medical and retail parks etc, but then years later without a flexible buyer like Bitcoin Miners of the excess power that is made, but not usable, years later the energy bills spike and get dumped on the affordable housing tenants, where this allows the curve to be flattened and more sustainable. So much synergy to this and unique to the decentalized incentives and network effects of bitcoin.

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There are excellent suggestions here that will impact the country in positive ways that have cascade effects. Implementing a Bitcoin standard by utilizing opportunity zones, improving our energy access through ever efficient mining, opening us to a global talent pool and securing our leadership is more than just innovation. Because Bitcoin is founded in root American ideals such as liberty, freedom, integrity, truth, and the true value that proof of work provides, we get to lead with a remembrance and now application of the ideas our forefathers valued.

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Thanks for the commentary and taking the time to read it all Nicole!