By Chris Hollingworth 
The Trump administration is considering expanding its Strategic Bitcoin Reserve following suggestions from the head of the White House’s crypto council on budget-neutral methods for acquiring the digital asset. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, discussed various ideas for the government to increase its Bitcoin holdings during an interview with the Crypto in America podcast.
One potential strategy mentioned by Hines involves realizing gains on the government’s gold certificates, which are currently undervalued compared to the actual price of gold. Referencing Senator Cynthia Lummis’ Bitcoin Act of 2025, Hines highlighted the opportunity to identify the true value of these certificates and use the proceeds to acquire more Bitcoin in a budget-neutral manner.
According to the Federal Reserve Bank of St. Louis, gold certificates held at Fed banks are valued at a statutory price significantly lower than the current spot price of gold, which has seen a substantial 40% increase over the past year. Senator Lummis’ proposed BITCOIN Act of 2025 includes Federal Reserve System gold certificates as a potential funding source for purchasing Bitcoin, emphasizing the need to update the valuation of these certificates to reflect their fair market value.
Hines expressed openness to exploring various approaches to bolster the reserve as long as they do not incur costs for taxpayers, aligning with the budget-neutral strategies outlined in President Trump’s executive order from March 6. The government currently holds approximately 207,000 BTC obtained through criminal and civil proceedings, making the United States one of the largest Bitcoin holders among nation-states.
During discussions, Hines emphasized the unique status of Bitcoin as a commodity with intrinsic value, distinguishing it from traditional securities. The White House’s crypto council has adopted a specific approach to managing the Strategic Bitcoin Reserve, recognizing the distinct characteristics of Bitcoin as a store of value. This differentiation was reinforced following President Trump’s announcement of plans to establish a digital asset stockpile, which included a selection of large-cap altcoins. Commerce Secretary Howard Lutnick clarified that Bitcoin would receive special treatment compared to other cryptocurrencies in the proposed reserve.
As discussions continue within the government regarding the expansion of the Strategic Bitcoin Reserve, the focus remains on exploring innovative and cost-effective strategies to enhance the country’s digital asset holdings.
