Potential New Coin Law

The House of Representatives and Senate have proposed limiting amendments to existing US treasury laws.

When the House and the Senate create similar bills, those bills are historically more likely to gain consensus and be written into law.

In January, HB440, introduced by Republican Rep. Timmons sought to prohibit the production of platinum-bullion and platinum-proof coins exceeding a face value of 200 USD.

This month, SB627, presented by Republican Senator Mike Lee argues for a similar treasury restriction.

Although we can see the value of limiting the production of high face-value coins, a $200 limit is much too low because coins with $200 face values are pursued by serious coin collectors.

House Bill Senate Bill Coin Laws

A limit on the production of coins with $200 face or nominal values would hamper the efforts of beginning investors who may have limited funds. 

However, a limit on the production of platinum coins with a face value of $1,000 or more might prove useful. Coins with face values over $1,000 are already very rare and not typically collected. Additionally, a $1,000 limit would hamper creative accounting solutions like the proposed creation of a $1T platinum coin just as effectively as a $200 limit.

We will keep an eye on these bills, and keep you informed.

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