In a striking suggestion from Sebastian Bea, the president of Coinbase Asset Management, a technical shift in Washington’s accounting methodology for gold might release nearly $100 billion for a strategic acquisition of Bitcoin—possibly ahead of market forecasts. This idea was shared during a recent 40-minute discussion on The Scoop with Frank Chaparro, where Bea emphasized the magnitude of the proposal, asserting, “Sometimes the ideas are so big that people either can’t hear them or don’t want to hear them. But they’ve got to listen to this one.”
At present, the U.S. gold reserve, totaling 261.5 million ounces, is still valued at $42.22 per ounce—a price fixed back in 1973. Given Wednesday’s market price hovering around $3,303 per ounce, this discrepancy between the book value and current market value represents an extraordinary gap of nearly $900 billion.
“Today, the U.S. government values its gold holdings at $42 and change due to statutory requirements,” Bea pointed out. “If they were to simply adjust that to market value, this could yield an additional $900 billion, potentially reaching a trillion dollars.”
From Mark-To-Market To Bitcoin
Bea articulated that Congress could consider a brief bill to amend 31 U.S.C. § 5117, which would involve adjusting the valuation of gold certificates and crediting any gains to an account at the Treasury, aligning with former President Trump’s executive order regarding a Bitcoin reserve—without inflating federal debt.
“Upon revaluation, this creates a $900 billion mark-to-market gain, which the Treasury could utilize in a budget-neutral manner to acquire varied assets, potentially including Bitcoin,” he explained.
This arithmetic aligns with Senator Cynthia Lummis’ BITCOIN Act, which aims for the Treasury to procure one million BTC (valued at approximately $100 billion) over five years while maintaining a neutral deficit stance.
Bea posited that a U.S. purchase of this magnitude—approximately 5.5% of Bitcoin’s current market capitalization—could elicit responses from other states. He suggested, “It’s hard to see a situation where other governments don’t feel compelled in some way to measure up,” comparing it to the last year’s phenomenon in gold where central banks acquired a record 1,037 tonnes.
Central bank interest in gold has been driven by ongoing concerns surrounding global debt levels and the broader economy. Bea questioned, “Is it so outrageous to consider saving in Bitcoin at a ninety-to-ten ratio, especially as the world continues to digitize?”
How Soon Is ‘Sooner Than Expected’?
While Bea refrained from specifying an exact timeline, he indicated that such legal changes could occur as early as this year, spurred by legislators in search of budget offsets for new expenditures or driven from within the Treasury if momentum builds behind the Lummis bill.
“Once you grasp the workings of banks and government operations, it becomes clear that they can revalue gold and purchase Bitcoin while remaining budget neutral. The only remaining factor is political will,” he concluded.
At press time, Bitcoin was trading at $93,422.
