TLDR
- Senator Cynthia Lummis is promoting the BITCOIN Act to revalue US gold reserves and expand the Strategic Bitcoin Reserve.
- The US Treasury will not purchase Bitcoin and will rely only on legally forfeited assets for the reserve.
- Only about 15% of seized Bitcoin is legally forfeited and eligible for use in the national reserve.
- Lummis proposes transferring increased gold value into Bitcoin holdings without raising taxes or adding to national debt.
- Treasury Secretary Scott Bessent supports budget-neutral strategies to strengthen US Bitcoin dominance.
The US Treasury will not buy Bitcoin to build its Strategic Bitcoin Reserve (SBR), relying only on forfeited assets. Senator Cynthia Lummis proposes the BITCOIN Act, linking gold revaluation to a debt-neutral way of expanding the reserve. Her plan aims to strengthen US Bitcoin dominance by bypassing legal limits on seized digital assets.
Gold Revaluation Plan Seeks to Unlock Reserve Growth
Senator Lummis, a Wyoming Republican, is promoting the BITCOIN Act to support strategic cryptocurrency growth without adding national debt. She proposes revaluing America’s gold reserves to their market price and using the difference to grow the SBR. The plan does not involve new spending, tax hikes, or borrowing.
In a statement, Lummis said,
“We cannot save our country from $37 trillion debt by purchasing more Bitcoin.” She added, “We can revalue gold reserves to today’s prices and transfer the increase in value to build SBR.”
This would provide a financial tool to support US Bitcoin dominance without taxpayer burden.
.@SecScottBessent is right: a budget-neutral path to building SBR is the way. We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR.
America needs the BITCOIN Act.
— Senator Cynthia Lummis (@SenLummis) August 14, 2025
Revaluation could unlock hundreds of billions of dollars in accounting value held in gold. That surplus could then be shifted into Bitcoin holdings. This bypasses limits tied to court-forfeited digital assets.
Seized Bitcoin Constraints Slow Treasury Strategy
Treasury Secretary Scott Bessent confirmed the department will not acquire Bitcoin through purchases for the SBR. Instead, per President Trump’s executive order, only Bitcoin seized and legally forfeited will form the reserve’s base. This leaves the Treasury dependent on a small portion of total government-held Bitcoin.
According to on-chain data, only about 15% of seized Bitcoin is legally forfeited. The rest is held pending court decisions or possible claims from private owners. This bottleneck prevents rapid reserve growth and delays efforts to boost US Bitcoin dominance.
Bessent stated, “Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve.” However, the current legal process hinders those goals. Lummis’ gold-backed model could provide a solution.
Lawmakers Look for Budget-Neutral Crypto Expansion
Lummis showed interest in coordinating reserve-building strategies with Bessent and Commerce Secretary Howard Lutnick. She emphasized finding ways to enhance US Bitcoin dominance without inflating the federal deficit. The BITCOIN Act may become the legislative foundation for that strategy.
Using revalued gold as collateral would let the government acquire Bitcoin without new taxpayer obligations. This move would mark a unique shift in national fiscal strategy and could signal a long-term pivot toward a crypto-forward monetary policy.
If adopted, the BITCOIN Act would represent the first modern use of gold revaluation to fund crypto holdings. It aims to reinforce America’s role as the global leader in Bitcoin. Supporters argue this plan aligns national strength with the rise of digital assets.
