Original source: Bitcoin Policy Institute
Compiled by: Bitpush News
On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing the establishment of a strategic Bitcoin reserve under the U.S. Treasury's Exchange Stabilization Fund (ESF) during the Trump administration, which requires signing after Trump takes office to take effect.
Bitpush Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to researching the policy and social impacts of Bitcoin and emerging currency networks.
The following is the full text of the executive order:
By the authority vested in me by the Constitution and laws of the United States (including Section 5302 of Title 31 of the U.S. Code), I hereby order as follows:
Section 1 Purpose
As global finance increasingly integrates digital assets and new economic tools, the United States must adjust its financial strategy to maintain stability and leadership in the global economy. Bitcoin is a decentralized, finite value storage asset, akin to digital gold, with unique properties that can enhance the resilience of the dollar and support U.S. economic interests.
This executive order designates Bitcoin as an asset suitable for strategic acquisition within the Treasury's Exchange Stabilization Fund (ESF), establishing a strategic Bitcoin reserve as a permanent national asset to benefit all Americans.
Section 2 Policy
The policy of the United States is:
1. Establish a strategic Bitcoin reserve to develop our economy and solidify the United States' future financial dominance.
2. Designate Bitcoin as a strategic asset held by the U.S. government, expand the asset diversity held by the ESF to ensure national economic security and competitive advantage in the 21st century, and promote industry development by attracting capital, talent, and voices.
3. Become a global leader in the digital asset industry, establishing and expanding businesses in our great nation.
Section 3 Establish the SBR and Designate Bitcoin as a Strategic Reserve Asset
(a) Establish a Strategic Bitcoin Reserve
Hereby establish a Strategic Bitcoin Reserve (SBR) managed by the Secretary of the Treasury, aimed at enhancing the diversity of U.S. reserve assets. To enhance confidence in its mission, the SBR will undergo regular audits, adhere to strict security standards, and implement comprehensive reporting measures to ensure long-term accountability and security.
(b) Integrate Government Bitcoin Holdings
Within 7 days of the issuance of this order, no Bitcoin under the control of any federal agency (including the U.S. Marshals Service) shall be sold, exchanged, auctioned, or otherwise mortgaged, and upon obtaining legal ownership of such Bitcoin (including after a final, non-appealable judgment in favor of the federal agency in a criminal or civil forfeiture proceeding), the head of that federal agency shall transfer it to the SBR.
(c) Designated Reserve Asset
Hereby designate Bitcoin as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days from the date of this order, the Secretary of the Treasury is directed to implement a Bitcoin acquisition plan to purchase and manage Bitcoin within the ESF. The goal of the SBR is to position the United States as the undisputed global leader in Bitcoin holding, innovation, and management, ensuring that U.S. interests, rather than those of foreign competitors, set the standards for the global digital asset strategy.
Section 4 Acquisition and Custody Agreement
(a) Acquisition Plan
Pursuant to 31 U.S.C. 45302, which authorizes the Secretary of the Treasury to 'manage... credit instruments,' the Secretary hereby directs that not less than $521 billion be allocated from the ESF for the strategic purchase of Bitcoin to be incorporated into the SBR, by purchasing debt from suitable counterparties and repaying in Bitcoin. The Secretary shall collaborate with reputable market participants according to agreements that maximize value and minimize risk. The initial acquisition plan should be completed within 365 days from the date of this order.
(b) Custody and Security Protocols
To protect the Bitcoin holdings of the SBR at all stages, the Secretary of the Treasury shall implement the following phased custody framework. Within 30 days of the issuance of this order, the Secretary shall confirm that the U.S. government's existing relationships with reputable and secure custody service providers are sufficient to ensure immediate and trusted storage solutions for Bitcoin within the SBR. The Secretary shall direct that all Bitcoin purchases under the acquisition plan be securely transferred to such custody service providers.
Meanwhile, the Secretary should coordinate with the NSA, Cybersecurity and Infrastructure Security Agency, National Institute of Standards and Technology (NIST), and any other agencies as required by the Secretary to develop and implement self-custody protocols (including dedicated hardware, vetted software, access controls, geographic distribution, multi-signature control, and physical security measures) aimed at enhancing long-term security, reducing reliance on third parties, and maintaining complete sovereign control over the U.S. Bitcoin reserve as a 'digital Fort Knox.' The Secretary shall ensure that SBR custody protocols are consistent with ESF audit processes, strict cybersecurity standards, and crypto reserve proof verification to guarantee 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 shall serve as a permanent pillar of U.S. financial strength and commitment to the future of the digital economy, in the enduring spirit of our nation's protection of the Fort Knox gold reserve. The Bitcoin held in the SBR should not be viewed as a short-term financial instrument or an emergency fund for everyday contingencies, but rather as a generational asset supporting America's prosperity and security for decades to come. This is the policy of the United States. The government shall hold (HODL) all Bitcoin acquired in the SBR for at least 25 years from the date of this order.
(b) Strict Limitations on Liquidation
Sales or other forms of divestment of the SBR shall only be permitted in the most severe and exceptional circumstances that clearly exceed normal financial fluctuations or geopolitical uncertainties.
(c) Strict Approval Procedures
Before any sale, the Secretary of the Treasury shall submit a detailed written determination accompanied by substantial evidence that the proposed liquidation directly addresses a specific national economic or security crisis. This determination must be approved by the President of the United States. Without explicit authorization, the Secretary of the Treasury shall not sell, mortgage, exchange, or otherwise dispose of any part of the SBR.
(d) Transparent and Controlled Execution
In rare cases, if a sale is approved, it should be conducted in the most prudent and tightly controlled manner to minimize market impact and maintain public confidence. Private, phased transactions or other moderated methods should be prioritized to ensure that even in a crisis, the nation’s reputation for financial prudence and accountability remains intact.
Section 6 Report and Transparency
(a) Public Reserve Proof
The Secretary of the Treasury should implement a public reserve proof process using crypto proofs. These proofs should be provided quarterly to ensure transparency of the ESF's Bitcoin holdings while protecting sensitive security information.
(b) Annual Report
As part of the annual report required by the Gold Reserve Act, the Secretary of the Treasury shall provide details on the status, performance, and strategic advantages of Bitcoin within the ESF. This report shall also summarize acquisition strategies, custody security measures, and impacts on economic stability, while considering 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 acquisition and management of Bitcoin within the ESF complies with U.S. national security, economic stability, and cybersecurity standards.
