A bold new idea is gaining traction in Washington.
A senior White House official has raised eyebrows across Wall Street and the crypto world by suggesting the U.S. government could tap into its gold reserves to purchase Bitcoin.
Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, proposed that unrealized gains from gold holdings could be used to help build out America’s national Bitcoin reserve.
“If we actually realize the gains on U.S. gold holdings, that would be a budget-neutral way to acquire more Bitcoin,” Hines said, calling it one of the more viable proposals circulating inside the administration.
The Bitcoin Act of 2025
Hines’s idea is tied to the Bitcoin Act of 2025, introduced by Senator Cynthia Lummis, which would authorize the U.S. Treasury to acquire up to 1 million BTC over the next five years, roughly 5% of the total supply.
How would it be funded? Through the sale of Federal Reserve gold certificates, meaning no new taxes or added debt. While still in its early stages, the proposal is gaining momentum.
From Fort Knox to the Blockchain
The U.S. holds more than 261 million ounces of gold, most of it valued on the books at just $42.22 per ounce. But with the current gold price of just over $3,000/oz, the spread between the booked value and current value presents an opportunity.
The U.S. could unlock nearly $800 billion in unrealized gains, potentially enough to fund a Bitcoin acquisition strategy without adding to the national debt.
But what does this mean in the context of Bitcoin and how much Bitcoin could the U.S. acquire?
If even a fraction of these newly realized gains were allocated toward Bitcoin, the impact could be large. For instance, with just over 10% of the unrealized gold profits, approximately $80-90 billion, the U.S. government could purchase 1 million Bitcoin at current market prices. That’s nearly 5% of Bitcoin’s total supply.
So if the U.S. were to leverage its gold reserves to accumulate Bitcoin, wouldn’t other countries feel the pressure to do the same?
If nations begin competing for Bitcoin as a strategic reserve asset, the implications could be game-changing. Governments that act early could secure a dominant position, while those that delay risk falling behind in this new financial era.
Would this spark a Bitcoin accumulation race among global powers? Would central banks reallocate part of their gold reserves into Bitcoin? These are the questions world leaders may soon have to consider.
A Strategic Shift in U.S. Crypto Policy
President Trump, in a recent address, reaffirmed his desire to make the U.S. the “leading Bitcoin power on the planet,” emphasizing moving away from regulatory crackdowns and toward crypto accumulation.
Hines echoed that sentiment, noting that “it’s high time that our president started accumulating assets for the American people, which is what President Trump is doing rather than taking it away.”
If implemented, this move would mark a historic shift in U.S. monetary strategy and Bitcoin could be taken seriously at the highest levels of government.
Bitcoin briefly jumped following the news, and speculation is growing that other nations may follow suit if the U.S. commits to building a sovereign Bitcoin reserve.
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