The United States may consider using its gold reserves to create a Bitcoin Strategic Reserve (SBR), according to Bo Hines, a senior White House adviser on cryptocurrency issues.

Hines noted that the Trump administration is exploring innovative ways to fund the SBR that would not require additional taxpayer spending.

These statements are likely aimed at reassuring the public, as 51% of American voters oppose the idea of an SBR, considering it a low priority for the federal budget, according to a recent Data for Progress poll.

Budget-neutral approaches to funding the SBR

Hines emphasized that his team has considered many proposals for funding the SBR, but the most promising are those that do not require an increase in budget spending. One such idea is to use the proceeds from gold certificates to buy bitcoin.

He also noted that gold certificates are currently significantly undervalued compared to the market price of gold. Revaluing these assets, as proposed in Senator Cynthia Lummins' Bitcoin Act of 2025, could provide the U.S. with the funds it needs to create a BTC reserve.

How does gold certificate revaluation work?

According to the Federal Reserve Bank of St. Louis, gold certificates are valued by Fed banks at 42.22 per troy ounce, which is significantly below the market price of gold, which is 3,037 per ounce.

The U.S. holds approximately 8,133 metric tons of gold, which is equivalent to 260.8 million troy ounces. At the current market price, the total value of gold is approximately 792 billion, while the book value is estimated at only 11 billion. This creates a potential profit of more than $780 billion.

Revaluing gold certificates to market prices could free up significant funds that could be used to create the SBR without raising tax revenues.

Problems and Alternatives

Despite the obvious financial benefits, revaluing gold certificates could face resistance from the Federal Reserve and the Treasury Department, as it could affect monetary policy and inflation expectations.

In addition, the idea would require congressional approval, which could be difficult due to legal and accounting complexities. Critics also note that revaluation does not create new wealth, but merely changes accounting figures, making it a politically sensitive issue.

Other budget-neutral approaches are being considered as alternatives, such as issuing Bitcoin bonds, using confiscated crypto assets, or tokenizing federal assets with private investors through decentralized finance (DeFi) mechanisms.

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