The Trump administration is exploring budget-neutral methods to expand its Strategic Bitcoin Reserve, focusing on potential opportunities to leverage the value of gold certificates held by the Federal Reserve.
During a recent interview with the Crypto in America podcast, Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, highlighted various strategies being considered to acquire more Bitcoin (BTC). “There’s been countless ideas” about how the government can secure additional digital currency while avoiding a financial burden on taxpayers, Hines stated.
One approach discussed involves realizing gains on gold certificates, which Hines noted are currently undervalued. Priced at a statutory $42.22 per troy ounce, these certificates contrast sharply with the soaring spot price of gold, which is currently valued at over $3,000 an ounce. Hines pointed to Senator Cynthia Lummis’ Bitcoin Act of 2025, which proposes recognizing the true market value of these gold certificates as a potential means for funding Bitcoin purchases without affecting the budget.
“If we actually realize the gains on [these holdings], that would be a budget-neutral way to acquire more Bitcoin,” Hines explained. Senator Lummis’ bill, designed to facilitate this conversion, mandates that the Federal Reserve tender all outstanding gold certificates to the Treasury Secretary. This would allow the issuance of new certificates that reflect the fair market value, generating substantial funds for Bitcoin without escalating taxpayer expenses.
The proposed strategies align with President Trump’s executive order issued on March 6, 2025. This order emphasizes the importance of pursuing budget-neutral frameworks for increasing government Bitcoin holdings. The U.S. government currently holds approximately 207,000 BTC seized during various criminal and civil proceedings, positioning itself as the largest known nation-state holder of the cryptocurrency.
“With all the inter-agency working group actors that will convene in these meetings, we’re going to hear some tremendous ideas,” Hines stated, expressing openness to various suggestions while emphasizing a desire not to limit potential strategies at this early stage.
Bitcoin's unique status was also a focal point during the conversation. Hines articulated the government’s view that Bitcoin should be treated distinctly from other digital assets. “The reason we structured the [Strategic Bitcoin Reserve] the way we did is because Bitcoin is different. It’s unique; it’s a commodity, not a security,” Hines noted. Commerce Secretary Howard Lutnick reinforced this perspective, clarifying that Bitcoin would be regarded differently from other altcoins mentioned in Trump’s initial digital asset stockpile announcement.
In addition to such strategies, the Trump administration is making significant strides in cryptocurrency legislation through bipartisan efforts. Representative Ro Khanna shared optimism regarding Congress’s ability to pass stablecoin legislation and a broader crypto market structure bill in 2025. During a Digital Asset Summit, Khanna indicated that a substantial number of lawmakers from both parties are starting to understand the necessity for such measures, signaling potential progress in regulatory discussions.
Senator Lummis, a pivotal figure in the push for Bitcoin integration into national monetary policy, previously suggested that the U.S. should contemplate converting a portion of its Federal Reserve gold reserves into Bitcoin to augment the national Bitcoin holdings. Last year, she introduced the BITCOIN Act, aiming to acquire one million Bitcoin, which constitutes approximately 5% of the total circulating supply through the sale of gold certificates.
Despite initial setbacks in advancing her proposed legislation during the 2023-2024 congressional session, Lummis has reintroduced the Bitcoin Act (S.954) at a Bitcoin-focused conference hosted by the Bitcoin Policy Institute. This initiative aims to secure the authorization for the United States to accumulate significant Bitcoin reserves. However, as of now, the text of the proposal has yet to be formally submitted.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Senator Lummis commented in a previous interview, asserting that such a measure would be economically neutral for the U.S. balance sheet. Her determination to see this through may play a critical role in establishing the U.S. as a leader in Bitcoin adoption.
As discussions surrounding Bitcoin’s role in national finance continue to evolve, it remains clear that the Trump administration is intent on creatively finding pathways to expand its digital asset portfolio while ensuring that government spending remains within limits. The White House crypto council is prepared to navigate this complex landscape, committed to supporting innovative solutions within the digital currency ecosystem.
Ultimately, as the U.S. grapples with the realities of a rapidly changing financial environment, the integration of Bitcoin and other digital assets presents both challenges and opportunities for policymakers. The outcome of these debates could significantly shape the future trajectory of the U.S. economy and its standing in the global cryptocurrency landscape.
With the situation unfolding and proposed legislation under review, all eyes will be on Capitol Hill and the White House as they discuss the potential for transforming a portion of the nation’s gold reserves into Bitcoin while maintaining stable economic conditions for American taxpayers.
