Article Reprint Source: Bitpush
Compiled by: BitpushNews
On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing the establishment of a Strategic Bitcoin Reserve under the Trump administration's Treasury Exchange Stabilization Fund (ESF), which requires signing after Trump's inauguration to take effect.
Bitpush Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to researching the policy and societal impacts of Bitcoin and emerging currency networks.
The full text of the executive order is as follows:
By the authority vested in me by the Constitution and the 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 U.S. must adjust its financial strategy to maintain stability and leadership in the global economy. Bitcoin is a decentralized, limited value storage asset similar to digital gold, possessing unique properties that can enhance the resilience of the U.S. dollar and support U.S. economic interests.
This executive order designates Bitcoin as a suitable asset for strategic acquisition within the Treasury's Exchange Stabilization Fund (ESF), establishing a Strategic Bitcoin Reserve, and serving as a permanent national asset that benefits all Americans.
Section 2 Policies
The policy of the United States is:
1. Establish a Strategic Bitcoin Reserve to develop our economy and consolidate America's future financial leadership;
2. Designate Bitcoin as a strategic asset held by the U.S. government, enhancing the diversity of assets held by the ESF to safeguard national economic security and competitive advantages in the 21st century, and promote industry development by attracting capital, talent, and voices;
3. Become a global leader in the digital asset industry, building and expanding businesses in our great nation.
Section 3 Establishing the SBR and Designating Bitcoin as a Strategic Reserve Asset
(a) Establish a Strategic Bitcoin Reserve
Hereby established is the 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) Consolidation of 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) may be sold, exchanged, auctioned, or otherwise pledged, and upon acquiring legal ownership of such Bitcoin (including after a final, non-appealable judgment in a criminal or civil forfeiture action favorable to the federal agency), it shall be transferred to the SBR by the head of that federal agency.
(c) Designated Reserve Assets
Hereby designated as suitable for acquisition and holding within the ESF is Bitcoin as a strategic reserve asset. Within 60 days of the issuance of this order, the Secretary of the Treasury is hereby instructed to implement a Bitcoin acquisition plan to acquire and manage Bitcoin within the ESF. The goal of the SBR is to position the U.S. as the undisputed world leader in the holding, innovation, and management of Bitcoin, ensuring that U.S. interests, not those of foreign competitors, set the standard for the global digital asset strategy.
Section 4 Acquisition and Custody Agreements
(a) Acquisition Plan
Pursuant to 31 U.S.C. 5302, which authorizes the Secretary of the Treasury to 'manage... credit instruments,' the Secretary hereby instructs that no less than $521 billion be allocated from the ESF for strategic Bitcoin acquisitions to be included in the SBR, by purchasing debt from appropriate counterparties and repaying in Bitcoin. The Secretary shall collaborate with reputable market participants based on agreements that maximize value and minimize risk. The initial acquisition plan shall be completed within 365 days of the issuance 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 reliable storage solutions for Bitcoin within the SBR. The Secretary shall instruct that all Bitcoin purchases under the acquisition plan be securely transferred to such custody service providers.
Meanwhile, 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 as requested by the Secretary to develop and implement self-custody agreements (including dedicated hardware, guaranteed software, access controls, geographic distribution, multi-signature controls, and physical security measures) aimed at enhancing long-term security, reducing reliance on third parties, and maintaining full sovereign control over the U.S. Bitcoin reserves as a 'digital Fort Knox.' The Secretary shall ensure that the SBR custody agreements are consistent with ESF audit procedures, stringent cybersecurity standards, and cryptographic reserve proof verification to ensure the integrity of the SBR and public confidence in the U.S.
Section 5 Conditions for Sale of the Strategic Bitcoin Reserve
(a) Long-term Preservation Principles
The SBR shall serve as a permanent pillar of America's financial strength and commitment to the future of the digital economy, akin to the enduring spirit with which our nation protects the Fort Knox gold reserves. The Bitcoin held within the SBR shall not be viewed as a short-term financial instrument or an emergency fund for everyday contingencies, but rather as a generational asset supporting the prosperity and security of the United States 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
The sale or other forms of divestment of the SBR shall only be allowed in the most severe and exceptional circumstances that clearly surpass ordinary financial volatility or geopolitical uncertainties.
(c) Strict Approval Processes
Prior to any sale, the Secretary of the Treasury shall submit a detailed written decision accompanied by substantial evidence demonstrating that the proposed liquidation directly addresses a specific national economic or security crisis. This decision must be approved by the President of the United States. The Secretary shall not sell, pledge, exchange, or otherwise dispose of any portion of the SBR without explicit authorization.
(d) Transparent and Controlled Execution
In rare instances, if the sale is approved, it should be conducted by the most prudent and strictly controlled methods to minimize market impact and maintain public confidence. Private, phased transactions or other restrained approaches should be prioritized to ensure that even in a crisis, the nation's reputation for financial prudence and responsibility remains intact.
Section 6 Reporting and Transparency
(a) Public Reserve Proof
The Secretary of the Treasury shall implement a public reserve proof process using cryptographic proofs. These proofs shall be provided quarterly to ensure the transparency of the ESF's Bitcoin holdings while safeguarding sensitive security information.
(b) Annual Report
As part of the annual report required by the ESF Operations Annual Report (as mandated by the Gold Reserve Act), the Secretary of the Treasury shall provide detailed information regarding the status, performance, and strategic advantages of Bitcoin within the ESF. This report shall also summarize acquisition strategies, custody security measures, and the impact 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 comply with U.S. national security, economic stability, and cybersecurity standards.
