TL;DR
- Senator Lummis proposes selling gold reserves to purchase Bitcoin.
- The Treasury holds 261.5 million ounces valued at $11 billion.
- The government already holds 328,372 BTC from seizures worth $22.3 billion.
Senator Cynthia Lummis urged the Treasury Department to utilize the country’s gold reserves for strategic Bitcoin acquisitions. The proposal aims to establish a national Bitcoin reserve that could help reduce public debt and strengthen long-term financial stability.
Lummis suggested the Treasury could sell part of its gold holdings or revalue gold certificates based on current market prices to fund the purchases. The plan contemplates acquiring up to one million Bitcoin over the next five years.
The United States holds the world’s largest gold reserves, approximately 8,133 metric tonnes. Their value reaches nearly $1.3 trillion at current market prices. Converting a portion of that value into Bitcoin would allow reserve asset diversification and provide exposure to what some consider a modern store of value.
The senator, known for her support of Bitcoin, argues the measure would help protect the country against inflation and currency depreciation over time.
Institutional Context and Bitcoin Performance
Treasury Secretary Scott Bessent recently highlighted Bitcoin’s long-term growth when referring to assets seized by the government. Those assets, initially valued at around $500 million, increased in worth to more than $15 billion due to the digital asset’s price appreciation.
The U.S. government currently holds approximately 328,372 Bitcoin, worth about $22.3 billion. Most of these holdings come from criminal seizures rather than direct purchases. The notable growth of those holdings generated increased interest among officials and institutions in holding Bitcoin as part of long-term financial reserves.
Despite Bitcoin recording a drop near 45% from its recent peak, major institutions and financial firms continue accumulating the asset. Companies like BlackRock, Fidelity, Strategy, and MARA Holdings increased their Bitcoin positions, reflecting confidence in its future value.
Institutional demand remains a key factor supporting the asset’s growth. Bitcoin currently trades around $68,202, with a 2% increase in the last 24 hours and a market capitalization of $1.36 trillion.