{"id":839886,"date":"2025-04-08T16:12:09","date_gmt":"2025-04-08T21:12:09","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/08\/govt-can-realize-gains-on-gold-certificates-to-buy-bitcoin-bo-hines\/"},"modified":"2025-04-08T16:12:09","modified_gmt":"2025-04-08T21:12:09","slug":"govt-can-realize-gains-on-gold-certificates-to-buy-bitcoin-bo-hines","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/08\/govt-can-realize-gains-on-gold-certificates-to-buy-bitcoin-bo-hines\/","title":{"rendered":"Gov\u2019t can realize gains on gold certificates to buy Bitcoin: Bo Hines"},"content":{"rendered":"
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The Trump administration appears poised to grow its Strategic Bitcoin Reserve after the White House\u2019s crypto council head suggested budget-neutral ways for acquiring the digital asset.\u00a0<\/p>\n

\u201cThere\u2019s been countless ideas\u201d about how the government can acquire more Bitcoin (BTC<\/a>), Bo Hines, executive director of the President\u2019s Council of Advisers on Digital Assets, said in an interview with the Crypto in America<\/em> podcast.\u00a0<\/p>\n

\"Gold,
\n

Bo Hines said the crypto council is open to creative ways to build the government\u2019s Strategic Bitcoin Reserve. Source: <\/em>Eleanor Terrett<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Perhaps the best way of doing so would be to realize the gains on the government\u2019s gold certificates, which are priced far less than bullion is actually worth today.\u00a0<\/p>\n

\u201cI\u2019ll actually point you to Senator [Cynthia] Lummis\u2019 Bitcoin Act of 2025, in which she believes that we can identify the real true value of some of these gold certificates,\u201d Hines said.\u00a0<\/p>\n

\u201cIf we actually realize the gains on [these holdings], that would be a budget-neutral way to acquire more Bitcoin,\u201d he said.<\/p>\n

As the Federal Reserve Bank of St. Louis explains<\/a>, all gold certificates held at Fed banks are \u201ccomputed at a statutory price of $42.22 per troy ounce.\u201d By comparison, spot gold is currently valued at more than $3,000 an ounce.\u00a0<\/p>\n

\"Gold,
\n

The spot gold price has rallied 40% over the past year. Source: <\/em>Kitco<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Senator Cynthia Lummis\u2019 proposed BITCOIN Act of 2025<\/a> lists \u201cFederal Reserve System gold certificates\u201d as one source of funding for Bitcoin purchases.\u00a0<\/p>\n

The bill requires that Fed banks \u201ctender all outstanding gold certificates in their custody to the Treasury Secretary\u201d so that the secretary can issue new certificates \u201cthat reflect the fair market value price of the gold held against such certificates by the Treasury.\u201d<\/p>\n

Hines said he\u2019s open to any ideas about how to grow the reserve, so long as it \u201cdoesn\u2019t cost the taxpayer a dime.\u201d That\u2019s the crux of budget-neutral strategies<\/a> for acquiring Bitcoin laid out in President Donald Trump\u2019s March 6 executive order.\u00a0<\/p>\n

\u201cWith all the inter-agency working group actors that will convene in these meetings, I mean, we\u2019re going to hear some tremendous ideas about how we can do it. I just don\u2019t want to box us in yet to what that actually looks like because I want to be able to hear from everybody.\u201d<\/p><\/blockquote>\n

The US government currently holds roughly 207,000 BTC seized in criminal and civil proceedings. By default, this makes America the largest known Bitcoin holder among nation-states.\u00a0<\/p>\n

\"Gold,
\n

Bitcoin holdings by nation-state. Source: <\/em>Bitbo<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>US stablecoin bill likely in \u2018next 2 months\u2019 \u2014 Trump\u2019s crypto council head<\/strong><\/em><\/a><\/p>\n

Bitcoin\u2019s special status<\/h2>\n

During the interview, Hines reiterated Bitcoin\u2019s special status<\/a>, suggesting that the White House crypto council was treating the strategic reserve and digital asset stockpile very differently.\u00a0<\/p>\n

\u201cThe reason we structured the [Strategic Bitcoin Reserve] the way we did is because Bitcoin is different. It\u2019s unique; it\u2019s a commodity, not a security,\u201d said Hines, adding:<\/p>\n

\u201cDavid [Sacks] likes to say it has the immaculate conception, meaning there\u2019s no issuer. It has intrinsic stored value, and it\u2019s traditionally accepted store of value as well. We wanted to make that distinction [between stockpile and reserve].\u201d<\/p><\/blockquote>\n

The White House rushed to defend Bitcoin\u2019s special status shortly after President Trump announced plans for a digital asset stockpile<\/a>, which included a smattering of large-cap altcoins.\u00a0Even Commerce Secretary Howard Lutnick<\/a> clarified that Bitcoin would be treated differently from the rest of the altcoins listed. <\/p>\n

\"Gold,
\n

Trump, pictured alongside White House crypto czar David Sacks and Bo Hines, signs an executive order establishing the Bitcoin Strategic Reserve. Source: <\/em>David Sacks<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

In addition to its Bitcoin acquisition targets, the Trump administration is making significant headway on cryptocurrency legislation through bipartisan cooperation.\u00a0<\/p>\n

According to Representative Ro Khanna<\/a>, a California Democrat, Congress should be able to pass a stablecoin bill and crypto market structure bill this year.\u00a0<\/p>\n

\"Gold,
\n

Speaking at the Digital Asset Summit in New York, Ro Khanna (right) said there are between 70 and 80 Democrat lawmakers who now understand the importance of stablecoin legislation. Source: Cointelegraph<\/em><\/p>\n<\/figcaption><\/figure>\n

Magazine: <\/strong><\/em>Unstablecoins: Depegging, bank runs and other risks loom<\/strong><\/em><\/a><\/p>\n