A bold idea is making waves in U.S. financial policy. A Federal Reserve research note from August 1, 2025, explores revaluing the U.S.’s 261.5 million troy ounces of gold, currently priced at $42.22 per ounce (a 1973 value, totaling $11 billion). At today’s market price of ~$3,300 per ounce, those reserves are worth over $850 billion. This could unlock massive funds without raising taxes or debt. Senator Cynthia Lummis’ BITCOIN Act of 2024 proposes using these gains to buy 1 million Bitcoin over five years, creating a Strategic Bitcoin Reserve to position the U.S. as a leader in the digital economy.
Here’s how it would work: the Fed would update its gold certificates to market value, transferring the extra cash to the Treasury to purchase Bitcoin. Combined with $6 billion from Fed earnings and a reduction in surplus funds, the plan aims to be budget-neutral. The idea is to treat Bitcoin like gold—a store of value—while signaling U.S. confidence in digital assets.
But there’s a catch. Revaluing gold was done before in 1934, boosting funds but causing inflation and shifting power from the Fed to the Treasury until 1951. Critics warn this could happen again, risking higher prices in an already shaky economy or weakening the Fed’s independence, which keeps U.S. monetary policy stable. Supporters, however, see it as a game-changer. With countries like China and Russia eyeing alternatives to the dollar, a Bitcoin reserve could hedge against currency risks and boost U.S. influence in the crypto space.
The proposal has political backing. Figures like former President Donald Trump and Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, support a Bitcoin reserve, with some online discussions on platforms like X highlighting enthusiasm for funding it through gold revaluation or tariffs. Yet, Treasury Secretary Scott Bessent warned in March 2025 that revaluing gold could disrupt markets and raise questions about the Fed’s autonomy.
For investors, this could legitimize Bitcoin, potentially driving its value higher as a recognized asset. For the economy, it’s a high-stakes bet—blending gold and crypto could either secure America’s financial future or spark unintended market chaos. Is this a visionary step toward a digital economy, or a risky experiment that could destabilize global markets?
Sources:
[1] Federal Reserve, “Official Reserve Revaluations: The International Experience,” August 1, 2025. https://www.federalreserve.gov/econres/notes/feds-notes/official-reserve-revaluations-the-international-experience-20250801.html
[2] Senator Cynthia Lummis, “BITCOIN Act of 2024,” July 31, 2024. https://www.lummis.senate.gov/2024/07/31/lummis-announces-bitcoin-strategic-reserve-legislation/
[3] Forbes, “U.S. Bitcoin Reserve: A Strategic Move,” August 1, 2024. https://www.forbes.com/sites/digital-assets/2024/08/01/us-bitcoin-reserve-a-strategic-move/
[4] https://x.com/search?q=bitcoin%20strategic%20reserve%20gold%20revaluation
[5] Reuters, “Treasury Secretary Bessent Warns on Gold Revaluation Risks,” February 15, 2025. https://www.reuters.com/markets/us/treasury-secretary-bessent-warns-gold-revaluation-risks-20250215