Fed Study Revives Debate on Revaluing Fort Knox Gold for Debt or Bitcoin

The Federal Reserve has published a research note, titled “Official Reserve Revaluations: The International Experience,” detailing how five countries have unlocked fiscal resources by revaluing their gold and foreign-exchange reserves without selling the assets. The paper stops short of making policy recommendations but outlines the accounting steps governments used to convert latent valuation gains into spendable funds.

Applied to the United States, the framework would let the Treasury reprice its 261.5 million ounces of gold—still carried at the 1973 official rate of $42.22 an ounce—closer to today’s market level of roughly $3,400. Such a move could generate book gains exceeding $750 billion, or about 3 percent of gross domestic product, which could be directed to debt reduction, budget support or other purposes without issuing new bonds.

The publication has revived debate in Washington and on Wall Street over whether a revaluation windfall should be used to trim the nation’s $37 trillion debt or finance a strategic Bitcoin reserve—ideas floated in a bill sponsored by Senator Cynthia Lummis and occasionally endorsed by former President Donald Trump. Treasury Secretary Scott Bessent said in March that the administration is “not revaluing the gold,” yet the Fed analysis broadens the range of options under discussion.

Signs of institutional demand for digital assets are also growing. New-York-based Parataxis Holdings said it intends to purchase up to $640 million of Bitcoin for its treasury, while Hong Kong asset manager TriVest recently acquired about $90 million in Bitcoin exposure. The moves underscore how a potential policy shift in Washington could intersect with a widening appetite for the token among professional investors.

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