Donald Trump’s Executive Order to Establish Strategic Bitcoin Reserve Drafted
The Bitcoin Policy Institute has drafted the executive order to establish a strategic Bitcoin reserve under the United States Treasury’s Exchange Stabilization Fund (ESF).
The draft aims to position Bitcoin as a national strategic asset for the U.S. under President Donald Trump.
The proposed order outlines measures to ensure the United States remains competitive in the evolving global digital economy.
Notably, this policy requires approval and signing after Donald Trump’s inauguration to take effect.
Details of The Bitcoin Reserve and Policy ObjectivesThe executive order emphasizes integrating Bitcoin into the U.S. financial system to strengthen economic security and global leadership.
According to the draft, Bitcoin’s decentralized and limited supply characteristics make it a valuable asset comparable to digital gold.
The proposal recommends designating Bitcoin as a strategic reserve asset within the ESF to diversify holdings, attract innovation, and promote domestic industry growth.
Under the draft’s provisions, the Treasury Secretary would oversee the creation of a Strategic Bitcoin Reserve (SBR), with an allocation of $521 billion for Bitcoin acquisition.
The proposal mandates that all Bitcoin held by federal agencies, such as the U.S. Marshals Service, be consolidated into the SBR within seven days of the order’s issuance. Notably, it prohibits the sale of any Bitcoin from this period.
Additionally, the draft directs the Treasury to implement a detailed acquisition plan within 60 days to establish the United States as a global leader in Bitcoin holdings and innovation.
Safeguarding Bitcoin Holdings
The draft order includes stringent measures to ensure the security of Bitcoin reserves. Initial custody of Bitcoin would rely on reputable third-party custodial service providers while the Treasury develops a robust self-custody framework.
The proposed self-custody measures involve collaboration with agencies such as the National Security Agency (NSA) and the Cybersecurity and Infrastructure Security Agency (CISA) to implement multi-signature controls, geographic distribution, and cryptographic reserve proof verification.
Additionally, the Treasury would be responsible for regular audits and transparency measures, including quarterly public proofs of reserve and detailed annual reports.
These reports would assess the strategic advantages of Bitcoin holdings, acquisition strategies, and economic impacts. The plan aims to maintain public trust while safeguarding national economic interests.
Global Context
The draft order arrives amid growing global interest in Bitcoin. Sarah Knafo, a French member of the European Parliament, has urged the European Union to establish its own strategic Bitcoin reserve.
She opposes the proposed digital euro, describing it as a potential tool for central control, and instead supports Bitcoin as a decentralized alternative.
Citing El Salvador’s adoption of Bitcoin as a legal tender in 2021, Knafo pointed to its success in boosting economic returns and national sovereignty.
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