Trump Administration Eyes Gold Gains to Boost Bitcoin Reserve

The Trump administration is exploring innovative methods to expand its Strategic Bitcoin Reserve, with a focus on budget-neutral strategies. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, highlighted several creative approaches during an interview. One notable suggestion involves realizing gains on the government’s gold certificates, which are currently undervalued compared to the market price of gold.

Hines pointed to Senator Cynthia Lummis’ proposed Bitcoin Act of 2025, which outlines a plan to identify the true value of gold certificates. By realizing the gains on these holdings, the government could acquire more Bitcoin without incurring additional costs. This approach aligns with the budget-neutral strategies outlined in President Donald Trump’s March 6 executive order, which emphasizes acquiring Bitcoin without burdening taxpayers.

The Federal Reserve Bank of St. Louis notes that gold certificates are valued at a statutory price of $42.22 per troy ounce, significantly lower than the current spot gold price of over $3,000 an ounce. Senator Lummis’ bill proposes that the Treasury Secretary issue new certificates reflecting the fair market value of the gold, which could then be used to fund Bitcoin purchases.

Hines emphasized that the crypto council is open to various ideas for growing the Strategic Bitcoin Reserve, as long as they do not impose additional costs on taxpayers. The US government currently holds approximately 207,000 BTC, making it the largest known Bitcoin holder among nation-states.

During the interview, Hines reiterated Bitcoin’s unique status, distinguishing it from other digital assets. He noted that Bitcoin is treated differently due to its commodity nature and intrinsic stored value, which sets it apart from securities. This distinction is crucial for the government’s strategic reserve and digital asset stockpile.

The White House has been proactive in defending Bitcoin’s special status, with Commerce Secretary Howard Lutnick clarifying that Bitcoin would be treated differently from other altcoins listed in the digital asset stockpile. This approach underscores the administration’s commitment to recognizing Bitcoin’s unique characteristics and its potential as a strategic asset.

In addition to its Bitcoin acquisition targets, the Trump administration is making progress on cryptocurrency legislation through bipartisan cooperation. Representative Ro Khanna, a California Democrat, expressed optimism about passing a stablecoin bill and crypto market structure bill this year, indicating growing support for cryptocurrency regulation among lawmakers.