In a bold move following the establishment of a Strategic Bitcoin Reserve (SBR) by President Donald Trump, David Sacks was tasked with leading a team to explore the acquisition of Bitcoin (BTC) for the nation.
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A key figure in the effort, Bo Hines, the Executive Director of the President’s Council of Advisers, has suggested one possible strategy: selling gold as a means to fund the purchase of Bitcoin, which he described as a “budget-neutral” approach.
This idea of selling gold has sparked considerable debate. Gold has been a cornerstone of sovereign wealth for millennia, often viewed as a reliable store of value, and it plays a significant role on the balance sheets of central banks worldwide. Critics are quick to point out the risks involved, considering gold’s historical significance and stability.
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However, Hines believes that there are at least three legal avenues the US government could pursue to sell gold for Bitcoin. The first and most straightforward method is to obtain Congressional approval. The US Congress holds the constitutional power to allocate resources and approve the federal budget. A bill currently working its way through Congress, the Bitcoin Act of 2025, introduced by Senator Cynthia Lummis, proposes that the US should acquire one million BTC, with the sale of gold funding a large portion of the purchase.
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In the absence of Congressional authorization, a second route could involve reactivating the US Exchange Stabilization Fund (ESF). Established by the Gold Reserve Act of 1934, the ESF allows the Treasury Secretary to manage the nation’s foreign exchange, gold, and securities to stabilize the dollar’s value. This fund could be used to sell gold for Bitcoin by utilizing the “instruments of credit” category, potentially allowing the Treasury to purchase BTC through future mining claims or bonds.
Lastly, there’s the possibility of leveraging the unrealized gains from revaluing the US government’s gold certificates. Since the Treasury holds gold at a nominal value set in 1973, reissuing these certificates to reflect the current market value of gold could generate significant funds—potentially over $700 billion—available for Bitcoin purchases.
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Each of these proposals carries risks, particularly given Bitcoin’s volatility. Nevertheless, the Trump administration, alongside figures like Sacks and Hines, could explore these legal frameworks to make Bitcoin a central part of the nation’s financial strategy through the SBR.
Alexander Stefanov
