Presenter urges Merkle‑tree audits and fair‑value benchmark for seized and unclaimed crypto

John Gotts, founder of the Digital Gold Foundation, told the Blockchain Digital Innovation Task Force that states should adopt a consistent measure to value layer‑1 cryptocurrencies and push exchanges for verifiable transparency.

"So the things that we need are, we need a formula for fair value, which Senate Bill 1649 lays out, digital gold standard benchmark, that anchor," Gotts said, describing a model that weights adoption (he estimated adoption accounts for roughly 70% of Bitcoin’s value), transaction volume and developer ecosystem to arrive at a fair price.

Gotts also urged mandatory exchange audits and public Merkle‑tree data so regulators and treasurers can check how many distinct holders and real users an exchange serves rather than relying on unaudited volume figures. "Give us a real time audit so people can actually see at the end of every day how many actual transactions of each coin an exchange actually do," he said.

Why it matters: Gotts framed the proposals as operational tools for public finance — when a state receives digital assets from seizures or unclaimed property, officials must decide whether to hold or liquidate. Without a defensible valuation benchmark and verifiable adoption data, treasurers face uncertainty about long‑term custody versus immediate liquidation.

Task force members asked about implementation and data availability; several said they would probe Arizona’s SB 1649 and similar bills. Gotts suggested that one state requiring Merkle‑tree disclosure could prompt wider industry compliance.

Next steps: task force staff will request copies of the Arizona draft and related proposals and include the Merkle‑tree/audit concept in a list of legislative options.