The Trump administration is considering revaluing gold to fund the purchase of Bitcoin.

A senior White House official in charge of cryptocurrency said this week that the Trump administration is considering revaluing long-existing gold certificates as a new solution to expand the nation's Bitcoin (BTC) holdings without increasing the federal budget deficit.

Bo Hines, Chairman of the President's Advisory Council on Digital Assets, stated in an interview on the podcast Crypto in America that the administration is considering budget-neutral methods to accumulate additional Bitcoin for the Strategic Bitcoin Reserve Fund.

At the beginning of this month, President Donald Trump signed an executive order allowing the establishment of a national Bitcoin reserve fund, marking an important shift in the United States' digital asset policy.

Currently, the US government is controlling approximately 207,000 BTC, most of which was obtained from seizures, making the US the largest holder of Bitcoin in the world.

Repricing Gold

According to Hines, the government is actively seeking "creative" strategies to increase the amount of Bitcoin held.

He shared:

"There are many ideas being considered... If the solution is neutral to the budget and does not waste taxpayers' money, we are open to considering any creative ideas that can be implemented."

One of the ideas that has received special attention is to revalue gold certificates based on actual market value, instead of the currently lower fixed price.

According to current laws, gold certificates held by banks under the Federal Reserve (Fed) are valued at a fixed rate of 42.22 USD/ounce – a price that has not changed since the early 1970s.

In the context of gold prices currently exceeding 3,000 USD/ounce, the difference between book value and market value can create a significant profit – this capital can be reinvested in accumulating digital assets, according to Hines.

This idea aligns with the proposed regulations in the BITCOIN Act of 2025, initiated by Senator Cynthia Lummis. The bill calls for the Federal Reserve to reimburse the outstanding gold certificates to the Treasury, which would then reissue them at a price reflecting the actual market value of the gold.

Supporters argue that revaluation could create billions of USD in unrealized profits – this capital could be used to bolster the federal government's Bitcoin reserves. Currently, lawmakers from both the Senate and the House are working together to push this bill forward with consensus from both parties.

Hines emphasized that no final decision has been made yet, but intersectoral discussions are actively ongoing.

"We are receiving many promising ideas on how to implement this. I don't want to limit my options too early because I want to hear opinions from all sides," he added.

Unique Asset

Hines emphasized that the government views Bitcoin as a unique type of asset, with characteristics distinct from other digital currencies. He stated that the decentralization and fixed supply of Bitcoin make it a particularly attractive option for long-term value storage.

Hines explained:

"David Sacks often says that Bitcoin has a 'perfect birth', meaning there is no issuing organization behind it. It has intrinsic value and is widely recognized as a means of storing value. We want to clarify the difference between Bitcoin reserves and other forms of storage."

The government's digital asset strategy includes two distinct approaches: one for Bitcoin and the other for a "reserve" of altcoins and other cryptocurrencies outside of Bitcoin, which is expected to be managed under different legal and regulatory frameworks.

Commerce Secretary Howard Lutnick had previously emphasized that Bitcoin would be regulated in a way that is distinct from other types of tokens under this executive order.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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