by Craig Hemke, Sprott Money:
The notion that the U.S. government might soon move to officially revalue its gold reserves has been a hot topic thus far in 2025. Let’s keep it going with some commentary on recent developments.
If you’ve been following these weekly columns, you know that the idea of gold revaluation has been a popular theme. As we get started this week, here are two links to review. This first one is from three weeks ago and focused upon remarks by the U.S. SecTreas Bessent regarding the “monetization of the asset side of the U.S. balance sheet”:
TRUTH LIVES on at https://sgtreport.tv/
https://www.sprottmoney.com/blog/possible-gold-price-revaluation
In this column from two weeks ago, we speculated about how a gold revaluation could be used to fund a sovereign wealth fund:
https://www.sprottmoney.com/blog/possible-gold-price-revaluation
The Strategic Bitcoin Reserve and Its Funding
After giving everyone a break last week, recent events demand that we revisit the topic today. And what are those recent events?
Recall that U.S. President Trump has often mentioned the creation of a “Strategic Bitcoin Reserve.” He first began discussing this idea while campaigning in the summer of 2024. He has brought it up several times since the election, and the White House officially unveiled the idea on March 5 with an Executive Order. See the link below:
https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/
The Bitcoin Act of 2025 and Gold Revaluation
Whether or not this reserve can be created simply by executive fiat remains unclear. The usual process would require instruction by Congress to codify legislation. How would that work? In the U.S., both houses of Congress pass nearly identical bills. These bills are then reconciled into one, and if that combined bill passes, it heads to the president for his signature or veto.
With this in mind, please take a few minutes to review the link below. Back in 2024, Congressman Nick Begich and Senator Cynthia Lummis introduced “Bitcoin Reserve” bills to their respective chambers. Nothing happened, and the bills were tabled…temporarily.
https://www.lummis.senate.gov/wp-content/uploads/BITCOIN-Act-FINAL.pdf
I say “temporarily” because early last week, both bills were resubmitted before Congress—the Begich bill in the House of Representatives and the Lummis bill in the Senate:
https://begich.house.gov/media/press-releases/congressman-nick-begich-and-senator-lummis-introduce-landmark-bitcoin-act
https://www.lummis.senate.gov/press-releases/lummis-colleagues-introduce-legislation-to-codify-trumps-revolutionary-strategic-bitcoin-reserve-secure-americas-financial-future/
The Impact of Gold Revaluation on Gold Prices
As the second link openly states, these bills are intended to “codify Trump’s Strategic Bitcoin Reserve.” Please allow me to state that more clearly: If Trump’s plan for a Bitcoin reserve is going to move forward, this might be how it will legally happen. If the bills are passed in both chambers, the combined “Bitcoin Act of 2025” will be sent to Trump for his signature.
