Now that the Strategic Bitcoin Reserve (SBR) is a proper government policy, its administrators are scrambling for tactics to construct and potentially sustain the plan.
With an order to make use of budget-neutral strategies to administer the reserve, Bo Hines, US President Donald Trump’s Executive Director on Digital Assets, suggests using gold certificates.
Hines shared many creative ideas on possible “budget-neutral” ways to purchase more Bitcoins, and he sees gold certificates as among the finest options. He added that these certificates are priced lower than actual gold, making it possible for the US government to appreciate gains when using them to purchase Bitcoins.
Government Continues To Explore ‘Budget-Neutral’ Ways To Fund SBR
Trump’s announcement of the executive order on the crypto reserve was met with mixed reactions. Although many expected the federal government to approve the BTC reserve, many were upset with the initial plan not to purchase latest Bitcoin. As a substitute, its administrators are tasked with tapping digital assets already owned by the federal government or acquiring latest ones through “budget-neutral approaches.”
Executive Director of the @WhiteHouse crypto working group @BoHines talks $BTC, ways to purchase more of it and the pondering behind including $ETH, $XRP, $ADA and $SOL within the separate stockpile. https://t.co/dBe1trxAAH pic.twitter.com/mz5Y5p4HgB
— Eleanor Terrett (@EleanorTerrett) March 21, 2025
In response to Hines, one creative and budget-neutral strategy to fund Bitcoin acquisition is to make use of gold certificates. As a guest on the Crypto in America podcast, the exec expects potential gains using gold certificates since they’re cheaper than actual gold. Hines continued by pointing to the Lummis Act, where Senator Cynthia Lummis suggested tapping the potential of the gold certificates.
Pricing Of Gold Certificates Differs From Actual Gold Bullions
In response to the Federal Reserve Bank of St. Louis, all gold certificates are assessed at their statutory price of $42.22 per troy ounce. In contrast, spot gold is priced at greater than $3k per ounce. In Senator Lummis’ Bitcoin Act 2025, the Federal Reserve System’s gold certificates can potentially fund future purchases.
Lummis’ bill requires the Fed banks to transfer their outstanding gold certificates under custody to the office of the Treasury Secretary. The secretary will then issue latest certificates reflecting gold’s current and fair market value.
Hines Open To Suggestions On How To Grow SBR
Hines added that he welcomes additional suggestions and suggestions on find out how to grow and manage the Bitcoin reserve, provided they will not be a burden on taxpayers. He said that is the first intent of Trump’s crypto executive order signed on March sixth. Hines is seeking to convene an inter-agency working group, and they’ll solicit information and suggestions from everybody.
Currently, the federal government holds around 207,000 Bitcoins that were seized through civil and criminal proceedings. With 207k Bitcoin holdings, the US has the largest BTC holdings amongst nation-states.
Featured image from Pexels, chart from TradingView
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