Trump Administration Looks to Expand Strategic Bitcoin Reserve
The Trump administration seems set to enhance its Strategic Bitcoin Reserve, following comments from the head of the White House’s crypto council, who proposed budget-neutral strategies for acquiring the cryptocurrency. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, shared during an interview with the Crypto in America podcast that there have been numerous discussions on potential methods for the government to increase its Bitcoin (BTC) holdings.
Creative Funding Through Gold Certificates
Hines highlighted that one effective strategy could involve realizing gains from the government’s gold certificates, which are currently valued significantly lower than the actual market price of gold. He referenced Senator Cynthia Lummis’ Bitcoin Act of 2025, which aims to assess the real value of these gold certificates. “If we realize the gains on these holdings, it would enable us to acquire more Bitcoin without impacting the budget,” Hines explained.
Understanding Gold Certificates and Their Valuation
The Federal Reserve Bank of St. Louis notes that gold certificates are maintained at a statutory value of $42.22 per troy ounce, while the current spot price of gold exceeds $3,000 per ounce. This discrepancy is significant, especially considering that the spot gold price has surged by 40% over the past year.
Proposed Legislation for Bitcoin Funding
Senator Lummis’ proposed legislation outlines that “Federal Reserve System gold certificates” could serve as a funding source for Bitcoin acquisitions. The bill stipulates that Federal Reserve banks must submit all outstanding gold certificates to the Treasury Secretary, who would then issue new certificates reflecting the fair market value of the gold backing them.
Ensuring Budget-Neutral Acquisition Strategies
Hines expressed his openness to various ideas for expanding the Strategic Bitcoin Reserve, as long as these initiatives do not burden taxpayers financially. This aligns with the budget-neutral approach emphasized in President Trump’s executive order issued on March 6. “With the various stakeholders involved, we will gather a plethora of innovative ideas. However, I prefer not to restrict our options prematurely, as I want to hear contributions from all parties,” he stated.
US Government’s Bitcoin Holdings
Currently, the U.S. government possesses approximately 207,000 BTC that has been seized through criminal and civil proceedings, making it the largest known Bitcoin holder among countries.
Bitcoin’s Unique Status
During the interview, Hines reaffirmed Bitcoin’s distinct position, indicating that the White House crypto council is treating the strategic reserve and the broader digital asset inventory differently. “We structured the [Strategic Bitcoin Reserve] uniquely because Bitcoin stands apart; it is a commodity, not a security,” Hines noted. He further explained that Bitcoin is seen as having intrinsic value and is widely accepted as a store of value.
Clarifications on Bitcoin Treatment
Following President Trump’s announcement regarding a digital asset stockpile that includes several major altcoins, the White House quickly clarified Bitcoin’s unique status. Commerce Secretary Howard Lutnick emphasized that Bitcoin would be treated differently compared to the other cryptocurrencies mentioned.
Advancements in Cryptocurrency Legislation
In addition to its Bitcoin acquisition plans, the Trump administration is making strides in cryptocurrency legislation through bipartisan efforts. Representative Ro Khanna, a Democrat from California, stated that Congress is on track to pass both a stablecoin bill and a crypto market structure bill within the year. Speaking at the Digital Asset Summit in New York, Khanna noted that a significant number of Democratic lawmakers, between 70 and 80, now recognize the importance of stablecoin regulations.
