Important Insights
- Bo Hines talked about the potential for utilizing US gold reserves at Fort Knox to acquire Bitcoin.
- Senator Lummis has recently reinstated the Bitcoin Act, aiming for a significant acquisition of Bitcoin by the US.
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Bo Hines, who is the Chief of Trump’s Crypto Council and leads the Presidential Council of Advisers for Digital Assets, indicated his willingness to consider an exchange of Fort Knox’s gold reserves for Bitcoin, provided it stays budget-neutral.
“If this is budget neutral and doesn’t cost the taxpayer a dime, you’re essentially exchanging one for the other,” Hines stated during a recent interview with FOX Business reporter Eleanor Terrett. The question at hand was whether selling some US gold reserves to acquire Bitcoin could be feasible.
However, Hines pointed out that the working group has not yet committed to any specific plan. Instead, its members are open to exploring various “creative ideas,” and Hines himself is eager to hear a wide range of views.
“What sets this White House apart is our openness to new ideas and innovative solutions,” Hines stated.
When questioned if the administration might consider other cryptocurrencies in addition to Ethereum, XRP, Solana, and Cardano—four major altcoins indicated in Trump’s initial crypto reserve announcement—Hines emphasized their support for innovative projects across different crypto ecosystems.
He further clarified, similar to a point made earlier by David Sacks, that the four altcoins were referenced due to their prominent market capitalization.
Lummis’ proposal to liquidate part of the Fed’s gold reserves
Senator Cynthia Lummis has previously suggested that the US Treasury Department should contemplate transforming a portion of the Federal Reserve’s gold reserves into Bitcoin to establish a national Bitcoin reserve.
Last year, Lummis proposed the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), which aimed to secure 1 million Bitcoin, roughly 5% of the total circulating supply, via the sale of Federal Reserve gold certificates.
This proposal is in alignment with Trump’s objectives of setting up a Bitcoin reserve, even though the original plan focused on utilizing seized government Bitcoin assets.
“We already possess the financial assets in the form of gold certificates, which can be converted to Bitcoin,” Lummis remarked in a November interview with Bloomberg. “Therefore, the impact on the US balance sheet would be fairly neutral.”
While Lummis’ bill did not advance during the 2023-2024 Congressional session, she reintroduced the Bitcoin ACT (S.954) last week at a Bitcoin-centric conference organized by the Bitcoin Policy Institute, with the goal of acquiring 1 million Bitcoin for the US.
The text of the bill has yet to be submitted as of March 21.
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