U.S. Bitcoin Act Could Unlock $1.5 Trillion From Gold Conversion

TLDR:

• The Lummis Bitcoin Act could convert gold certificates into Bitcoin, injecting up to $1.5 trillion into U.S. reserves.
• The Treasury may reprice gold from $42.22 to $4200 per ounce to fund Bitcoin purchases worth $90–200 billion yearly.
• The Federal Reserve’s gold revaluation would create an internal cash credit for Bitcoin acquisitions without selling gold.
• The plan proposes the U.S. to accumulate 200,000 BTC annually through OTC purchases for 20 years.
  

The proposed Lummis Bitcoin Act of 2025 could mark one of the largest financial realignments in modern U.S. history. The draft outlines how gold certificates held by the Federal Reserve could be repriced and partially converted into Bitcoin. 

Supporters say the move would strengthen national reserves while maintaining balance sheet integrity. If enacted, it would create a pathway for the Treasury to build a long-term Bitcoin position without expanding the money supply. 

The framework aims to connect legacy gold assets to a modern digital reserve model.

Treasury May Reprice Gold to Fund Bitcoin Reserves

According to MartyParty on X, the draft details how the Treasury and Federal Reserve could coordinate the conversion. 

Within 90 days of the law’s passage, the Fed would tender its existing gold certificates, currently valued at $42.22 per ounce, to the Treasury Secretary. These would then be reissued at current market rates, estimated around $4,200 per ounce as of mid-October 2025.

This revaluation would produce a cash difference of roughly $1.5 trillion on paper. Rather than selling physical gold, the Fed would internally transfer this credit to the Treasury’s general fund. The process allows the government to generate liquidity without triggering inflationary pressure or disrupting gold markets. The Treasury could then allocate between $90 and $200 billion annually toward Bitcoin accumulation.

Analysts observing the draft say this approach balances financial modernization with operational caution. It enables gradual Bitcoin exposure without abrupt policy or market shocks.

U.S. Plans Gradual Bitcoin Purchases Under New Act

The Lummis proposal reportedly sets out a controlled accumulation model. The Treasury would acquire around 200,000 Bitcoin annually through over-the-counter trades or regulated exchanges. This structure helps avoid large market swings or price distortions.

Acquired Bitcoin would be stored in secure, decentralized vaults distributed across several U.S. states. These holdings would be locked for at least two decades and could only be liquidated in declared national emergencies. The setup creates a strategic reserve similar to traditional gold storage but adapted for a digital era.

The draft suggests that such an initiative could anchor Bitcoin as a core U.S. reserve asset over time. While still in early stages, the Act represents a potential turning point for how national assets are diversified and secured.