Senator Lummis Proposes Gold Revaluation to Sidestep 15% Bitcoin Seizure Roadblock

In a bold move that’s rattling both crypto and traditional finance circles, Senator Cynthia Lummis is pushing for gold revaluation as an end-run around the government’s controversial 15% seized Bitcoin bottleneck. The Wyoming Republican’s play could rewrite the rules of monetary strategy—or just add another layer to Washington’s financial theater.

Gold’s Glow-Up vs. Bitcoin’s Chains

Lummis’s proposal flips the script on Treasury’s crypto crackdown by leveraging an age-old asset. While regulators cling to confiscated BTC like dragons hoarding treasure, her plan would effectively melt the padlocks by revaluing bullion reserves. Talk about alchemy meets modern monetary policy.

The 15% Stranglehold

At the heart of the clash? A full 15% of Bitcoin’s circulating supply currently locked in government seizures—creating artificial scarcity that’s been choking decentralized finance pipelines. Lummis’s workaround? Dust off Fort Knox’s ledgers and recalculate gold’s baseline value to offset the crypto liquidity crunch. Because nothing says ‘21st century solution’ like recalculating the worth of shiny rocks.

Wall Street’s Whispered Reactions

Banking insiders are either sweating or salivating at the implications. ‘It’s either genius or desperation,’ muttered one hedge fund manager between sips of $28 artisanal coffee. ‘But if it works, we’re looking at the ultimate hedge—gold-backed crypto liquidity.’ Or just another way for boomers and zoomers to finally agree on something: their mutual distrust of federal balance sheets.

The Bottom Line

Whether this becomes a legitimate bypass or just political theater, one thing’s clear: when you can’t break the bottleneck, sometimes you just need to melt it down and recast the whole system. Gold standard meets crypto vanguard—only in America.

Cynthia Lummis Pushes Gold Revaluation Plan to Fast-Track US Bitcoin Dominance

Lummis, a long-time pro-Bitcoin lawmaker from Wyoming, is pushing the Bitcoin Act to tie gold revaluation to a budget-neutral pathway for expanding the SBR.

“Scott Bessent is right: a budget-neutral path to building SBR is the way. We cannot save our country from $37 trillion debt by purchasing more Bitcoin, but we can revalue gold reserves to today’s prices and transfer the increase in value to build SBR. America needs the bitcoin Act,” she articulated.

Her comments came in response to Treasury Secretary Scott Bessent. Bessent said forfeited Bitcoin, already in federal custody, WOULD serve as the foundation for the reserve established under President Trump’s March Executive Order.

“Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world,’” Bessent posted.

While the federal government holds billions of dollars’ worth of seized Bitcoin, on-chain data suggests only about 15% of these assets have been legally forfeited.

The remainder could be subject to court rulings, creditor claims, or returned to private owners. These constrictions make them ineligible for the reserve.

It creates a structural challenge, as legal processes bottleneck the reserve’s growth. This is in contrast to a lack of BTC in government custody.

Lummis’ gold-revaluation plan aims to sidestep that problem. Updating the value of America’s Gold holdings to current market prices could unlock hundreds of billions of dollars on paper.

The Treasury could transfer that surplus value into Bitcoin without adding to the national debt. Theoretically, this would not require tax hikes, spending cuts, or new borrowing.

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The Wyoming Senator’s post signals her readiness to translate the idea into legislation. She also demonstrated interest in working with Scott Bessent and Commerce Secretary Howard Lutnick.

Together, they could identify budget-neutral ways to continue growing the nation’s Bitcoin reserve and potentially outpace peers in the race.

The proposal intensifies speculation about America’s long-term crypto strategy. Relying on seized Bitcoin creates perverse incentives to expand asset forfeiture powers, but it may also be a pragmatic way to accumulate BTC without taxpayer expense.

If enacted, the BITCOIN Act could mark the first time in modern US history that gold revaluation funds strategic cryptocurrency holdings. This would be a symbolic and financial pivot toward positioning the US as the world’s top Bitcoin power.