The Bitcoin Policy Institute has drafted an executive order proposing the creation of a strategic Bitcoin reserve under the U.S. Treasury’s Exchange Stabilization Fund (ESF) under the Trump administration. The draft order will need to be signed by Trump after he takes office.
Here is the full text of the draft executive order: By virtue of the authority vested in me by the Constitution and the laws of the United States, including section 5302 of title 31, United States Code, I hereby issue the following order:
Section 1: Objectives
Given the increasing integration of digital assets and new economic tools in global finance, the United States must adjust its financial strategy to maintain global economic stability and leadership. As a decentralized, limited asset store, Bitcoin has the characteristics of digital gold, which can enhance the resilience of the US dollar and support the economic interests of the United States. This executive order aims to include Bitcoin in the strategic acquisition assets within the Treasury's Exchange Stabilization Fund (ESF), establish a strategic Bitcoin reserve, and make it a permanent asset of the country for the benefit of all American citizens.
Section 2: Policies
The U.S. policy goals are: 1. Establish a strategic Bitcoin reserve to promote economic development and ensure the future financial leadership of the United States; 2. Make Bitcoin a strategic asset of the U.S. government, expand the ESF's asset portfolio, and ensure national economic security and competitive advantage in the 21st century, while attracting capital, talent and innovation to promote industry development; 3. Become a global leader in the digital asset industry and establish and expand businesses in our country.
Section 3: Establishing the SBR and Designating Bitcoin as a Strategic Reserve Asset
(a) Establishment of the Strategic Bitcoin Reserve The Strategic Bitcoin Reserve (SBR) is hereby established and managed by the Secretary of the Treasury for the purpose of increasing the diversity of the United States reserve assets. To enhance public confidence, the SBR will be subject to regular audits, strict security standards, and comprehensive reporting measures to ensure long-term accountability and security. (b) Consolidation of Government Bitcoin Holdings Within 7 days of the date of this order, no bitcoin controlled by any Federal agency (including the United States Marshals Service) shall be sold, exchanged, auctioned, or otherwise pledged and shall be transferred to the SBR by the head of such Federal agency upon acquisition of legal title to such bitcoin (including upon final, non-appealable judgment in a criminal or civil forfeiture action in favor of the Federal agency). (c) Designation of Reserve Assets Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of the date of this order, the Secretary of the Treasury is directed to implement a Bitcoin Acquisition Program to acquire and manage bitcoin within the ESF. The goal of the SBR is to position the United States as the undisputed world leader in bitcoin holdings, innovation, and management, ensuring that American interests, rather than those of foreign competitors, set the standard for global digital asset strategy.
Section 4: Purchase and Escrow Agreement
(a) Procurement Program Pursuant to 31 U.S.C. 4 5302, which authorizes the Secretary of the Treasury to “deal with … credit instruments,” the Secretary of the Treasury hereby directs that not less than $521 billion be appropriated from the ESF for the strategic procurement of bitcoin for inclusion in the SBR, in a manner consistent with the obligations under the law, by purchasing debt from appropriate counterparties repayable in bitcoin. The Secretary shall work with reputable market participants on an agreement that maximizes value and mitigates risk. The initial procurement program shall be completed within 365 days of the date of this order. (b) Custody and Security Protocols In order to protect the SBR’s bitcoin holdings at all stages, the Secretary of the Treasury shall implement the following phased custody framework. Within 30 days of the date of this order, the Secretary shall confirm that the U.S. Government’s existing relationships with reputable and secure custodians are sufficient to ensure an immediate, trusted storage solution for bitcoin within the SBR. The Secretary shall direct that all bitcoin purchases under the procurement program be securely transferred to such custodians. At the same time, the Secretary shall coordinate with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology (NIST), and any other agencies requested by the Secretary to develop and implement self-custody protocols (including dedicated hardware, assured software, access controls, geographic distribution, multi-signature controls, and physical security measures) designed to enhance long-term security, reduce reliance on third parties, and maintain full sovereign control over the U.S. Bitcoin Reserve as a “digital Fort Knox.” The Secretary shall ensure that the SBR custody protocol is consistent with the ESF audit procedures, rigorous cybersecurity standards, and cryptographic proof of reserve verification to ensure the integrity of the SBR and the confidence of the American public.
Section 5: Conditions for the sale of the Strategic Bitcoin Reserve
(a) Long-term Preservation Principle The SBR should serve as a permanent pillar of America’s financial strength and commitment to the future of the digital economy, in the same enduring spirit that preserved our nation’s gold reserve at Fort North. Bitcoin held in the SBR should not be viewed as a short-term financial instrument or a rainy day fund for everyday emergencies, but rather as a generational asset that supports America’s prosperity and security for decades to come. It is the policy of the United States. The Government shall hold (“HODL”) all Bitcoin acquired in the SBR for at least 25 years after the date of this order. (b) Strict Limitations on Liquidation The sale or other divestment of the SBR shall be permitted only in the most dire and extraordinary circumstances that clearly outweigh ordinary financial volatility or geopolitical uncertainty. (c) Strict Approval Process Before any sale is made, the Secretary of the Treasury shall submit a detailed written determination, accompanied by substantial evidence, demonstrating that the proposed liquidation is in direct response to an extraordinary national economic or security crisis. The determination must be approved by the President of the United States. The Secretary of the Treasury shall not be authorized to sell, pledge, exchange, or otherwise dispose of any portion of the SBR without express authorization. (d) Transparent and controlled execution In the rare cases where a sale is approved, it should be conducted through the most sensible and tightly controlled methods to minimize market impact and maintain public confidence. Private, phased transactions or other measured approaches should be preferred, ensuring that even in a crisis, the country's reputation for financial prudence and responsibility remains intact.
Section 6: Reporting and transparency
(a) Public Reserve Certification The Secretary of the Treasury shall implement a public reserve certification process using cryptographic certifications. These certifications shall be provided on a quarterly basis to ensure transparency of the ESF's bitcoin holdings while protecting sensitive security information. (b) Annual Report As part of the annual report on ESF operations required by the (Gold Reserve Act), the Secretary of the Treasury shall provide detailed information on the status, performance, and strategic benefits of bitcoin within the ESF. The report shall also summarize procurement strategies, custodial security measures, and impacts on economic stability, subject to considerations of national economic security. **Section 7: Interagency Coordination** The Secretary of the Treasury shall coordinate with the Federal Reserve, the Department of Defense, and other relevant Federal agencies to ensure that the procurement and management of bitcoin within the ESF is consistent with United States national security, economic stability, and cybersecurity standards.