Dennis Porter, founder of the Satoshi Action Fund, has proposed a draft executive order for President-elect Donald Trump to establish a Strategic Bitcoin Reserve within the Exchange Stabilization Fund (ESF). The order allows for an initial allocation of up to 2% of the ESF’s total portfolio value over an 18-month pilot period.
The draft outlines a roadmap for incorporating Bitcoin into the ESF, a fund traditionally used to stabilize the US dollar and respond to macroeconomic shocks. The US Treasury would be authorized to acquire, hold, and manage Bitcoin as part of the ESF portfolio, and Bitcoin would be treated similarly to foreign reserves like gold or foreign currencies.
The Treasury would establish a working group to develop custody systems for secure management of Bitcoin holdings. The proposal would discontinue the auction of forfeited Bitcoin by the USMS, with approximately 200,000 BTC currently in US custody serving as the initial foundation of the Strategic Bitcoin Reserve.
The draft includes robust oversight mechanisms to balance innovation with accountability. The Treasury would issue semiannual reports detailing Bitcoin transactions, holdings, and risk management strategies to Congress and the President. The Treasury Inspector General and the Government Accountability Office (GAO) would conduct regular audits, with annual public summaries to ensure transparency.
The draft acknowledges that the ESF may not be a permanent solution, and within 24 months, the Treasury would be required to deliver a comprehensive report to Congress outlining alternative frameworks for reserve management and legislative recommendations to enshrine the Strategic Bitcoin Reserve into US federal law.
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