The Trump administration seems ready to expand its Strategic Bitcoin Reserve following comments from the head of the White House’s crypto council, who proposed budget-neutral strategies for acquiring Bitcoin.
Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, shared during an interview on the Crypto in America podcast that there are numerous ideas regarding how the government could increase its Bitcoin holdings.
Bo Hines indicated that the crypto council is open to innovative methods for enhancing the government’s Strategic Bitcoin Reserve. Source: Eleanor Terrett
One potential approach to acquire more Bitcoin could involve realizing the gains from the government’s gold certificates, which are valued significantly lower than the current market price of gold. Hines referenced Senator Cynthia Lummis’ Bitcoin Act of 2025, suggesting it could help identify the true value of some of these gold certificates.
According to Hines, “If we realize the gains on [these holdings], that would be a budget-neutral way to acquire more Bitcoin.” The Federal Reserve Bank of St. Louis notes that all gold certificates held at Fed banks are calculated at a statutory price of $42.22 per troy ounce, while the spot price of gold exceeds $3,000 per ounce at present.
Lummis’ proposed BITCOIN Act of 2025 includes “Federal Reserve System gold certificates” as a funding source for Bitcoin purchases. The bill mandates that Fed banks “tender all outstanding gold certificates in their custody to the Treasury Secretary,” allowing the issuance of new certificates reflecting the gold’s fair market value.
Hines emphasized his openness to various strategies for expanding the reserve, as long as they do not impose any costs on taxpayers. This principle aligns with the budget-neutral strategies outlined in President Trump’s executive order from March 6.
