The Trump administration appears to be poised to expand its strategic Bitcoin reserve after the White House Cryptocoin Chairperson proposed a budget-neutral way to acquire digital assets.
“There were countless ideas” about how the government could win more Bitcoin (BTC), Bo Hines, executive director of the Presidential Advisory Council on Digital Assets, said in an interview with the Crypto in America Podcast.
Bo Hines said the Crypto Council is open to creative ways to build government strategic Bitcoin reserves. Source: Eleanor Terrett
Perhaps the best way to do so is to realize the benefits of government gold certificates.
“In fact, I’m pointing to Senator (Cynthia) Ramis’ Bitcoin Act of 2025. She believes she can identify the true value of some of these gold certificates,” Hines said.
“If you actually notice profits (these holdings), it will be a budget-neutral way to win more Bitcoin,” he said.
As the Federal Reserve Bank of St. Louis explains, all gold certificates held by the Fed are “calculated at a statutory price of $42.22 per troy ounce.” By comparison, Spot Gold is currently valued at over $3,000 per ounce.
Spot Gold prices have risen 40% over the past year. Source: Kitco
The senator who proposed Sen. Cynthia Lumith’s 2025 Bitcoin Act lists the “Federal Reserve System Gold Certificate” as a source of funding for Bitcoin purchases.
The bill requires that the Fed Bank “will bid all outstanding certificates in custody to the Secretary of the Treasury,” so that the secretary can now issue a new certificate “that reflects the fair market value price of the gold held by the Treasury against such certificates.”
Hines said he is embraced with ideas on how to grow the reserve as long as “we don’t cost taxpayers a dime.” This is the heart of the budget-neutral strategy to acquire Bitcoin, laid out in President Donald Trump’s March 6 executive order.
“With every interagency working group actor we convened at these meetings, we’re going to hear some incredible ideas on how that can be done. I still want to hear from anyone, so I don’t want to box it up yet what it actually looks like.”
The US government currently holds approximately 207,000 BTC seized in criminal and civil cases. By default, this makes America the largest Bitcoin holder of nation-states.
Bitcoin Holdings by a nation-state. Source: Bitbo
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Special Bitcoin Status
During the interview, Hines repeats Bitcoin’s special status, suggesting that the White House Cryptocourse treats strategic reserves and digital assets stockpiling very differently.
“The reason we made up (a strategic Bitcoin reserve) is that Bitcoin is different. It’s unique. It’s a product, not security, not security,” Hines said.
“David (Sack) likes to say it has the concept of Immaculate. That means there are no publishers. There are also storages that are intrinsic and traditionally valuable. He wanted to make that distinction (between stock and reserve).”
The White House was rushing to protect Bitcoin’s special status shortly after President Trump announced plans for digital asset stockpiling, including massive altcoin spraying. Even Commerce Secretary Howard Lutnick revealed that Bitcoin is treated differently from other altcoins listed.
Trump is portrayed alongside White House Crypto Czar David Sacks and Bo Hines, and has signed an executive order establishing a strategic reserve for Bitcoin. Source: David Sacks
In addition to its Bitcoin acquisition goal, the Trump administration is pushing forward with cryptocurrency laws through bipartisan cooperation.
According to California Democrat Ro Khanna, Congress should be able to pass the Stablecoin Bill and Crypto Market Structure Bill this year.
Speaking at the Digital Assets Summit in New York, Ro Khanna (right) said there are currently 70-80 Democrats who understand the importance of Stablecoin legislation. Source: Cointelegraph
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