US Government May Acquire $100 Billion in Bitcoin Through Legal Change

Sebastian Bea, president of Coinbase Asset Management, proposes that a technical change in how the U.S. accounts for its gold could enable a strategic Bitcoin purchase of nearly $100 billion. This shift may occur years earlier than market anticipations.

Key points include:

The U.S. gold hoard is valued at $42.22 per ounce, a rate fixed since 1973, despite a current market price around $3,303. The discrepancy represents a potential $900 billion gain if marked to market.
Bea suggests Congress could amend laws to allow revaluation, which would enable the Treasury to use this gain to acquire assets like Bitcoin without increasing federal debt.
This aligns with Senator Cynthia Lummis' BITCOIN Act, which aims for the Treasury to buy one million BTC over five years while remaining deficit neutral.
A purchase of this scale could prompt other governments to follow suit, reminiscent of last year's record gold purchases by central banks.
Bea indicated that the legal change might happen within this year, contingent on political momentum or legislative offsets for new expenditures.

As of now, Bitcoin (BTC) is priced at $93,422.

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