Congressional Republicans have introduced legislation that would establish a Strategic Bitcoin Reserve by revaluing decades-old gold certificates held by the Federal Reserve, potentially unlocking billions in unrealized government assets to fund cryptocurrency purchases.
The BITCOIN Act of 2025, introduced by Sen. Cynthia Lummis of Wyoming and Rep. Nick Begich of Alaska, would require the Federal Reserve to surrender all outstanding gold certificates to the Treasury Department within 180 days of enactment.
The Treasury would then reissue certificates reflecting current market prices rather than the official $42.22 per ounce rate established decades ago—a figure the Federal Reserve confirmed in its recent research as the historical statutory price for most US gold reserves.
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With gold trading near $3,400 per ounce, the revaluation of the US government’s approximately 261 million troy ounces could generate substantial funds. The legislation directs these proceeds toward purchasing up to 1 million Bitcoin over five years, creating what supporters call a “digital gold” reserve.
The bill also allocates $6 billion annually from Federal Reserve earnings and reduces the Fed’s surplus fund requirements from $6.825 billion to $2.4 billion to help finance Bitcoin purchases.
President Donald Trump signed an executive order in March establishing a framework for a Strategic Bitcoin Reserve, though congressional approval would be needed for the funding mechanism outlined in the legislation.
Critics argue the plan essentially represents dollar debasement comparable to past quantitative easing measures, while supporters contend Bitcoin could provide protection against economic uncertainty and potentially help reduce the national debt if the cryptocurrency appreciates in value.
The Federal Reserve paper by Colin Weiss, titled “Official Reserve Revaluations: The International Experience,” examines how countries including Italy, Lebanon, and South Africa have used similar revaluation proceeds to cover government expenses and reduce debt.
The legislation faces an uncertain path in Congress, where lawmakers continue debating the role of digital assets in US financial policy.
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