Compiled by: BitpushNews
On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing to establish a strategic Bitcoin reserve under the Trump administration's U.S. Treasury Exchange Stabilization Fund (ESF). The order needs to be signed after Trump takes office to take effect.
Note: The Bitcoin Policy Institute is a nonpartisan, nonprofit organization dedicated to studying the policy and social impacts of Bitcoin and emerging monetary networks.
The following is the full text of the 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, it is hereby ordered 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), establishes the Strategic Bitcoin Reserve, and serves as a permanent national asset for the benefit of all Americans.
Section 2 Policy
The policy of the United States is:
1. Establish the Strategic Bitcoin Reserve to develop our economy and solidify America's future financial dominance;
2. Designate Bitcoin as a strategic asset held by the U.S. government, expanding the diversity of assets held by the ESF to safeguard 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 enterprises in our great nation.
Section 3 Establishing the SBR and Designating Bitcoin as a Strategic Reserve Asset
(a) Establish the Strategic Bitcoin Reserve
Hereby establishes the Strategic Bitcoin Reserve (SBR), managed by the Secretary of the Treasury, to enhance the diversity of America's reserve assets. To bolster 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) Integration 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) shall be sold, exchanged, auctioned, or otherwise pledged, and upon obtaining legal ownership of such Bitcoin (including after a final, non-appealable judgment in a civil or criminal forfeiture proceeding favorable to the federal agency), such Bitcoin shall be transferred to the SBR by the head of that federal agency.
(c) Designated Reserve Asset
Hereby designates Bitcoin as a strategic reserve asset suitable for acquisition and holding within the ESF. 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 United States as the undisputed global leader in the holding, innovation, and management of Bitcoin, ensuring that U.S. interests, rather than those of foreign competitors, set the standards for global digital asset strategy.
Section 4 Acquisition and Custody Agreement
(a) Procurement Plan
Pursuant to the authority granted to the Secretary of the Treasury to 'manage... credit instruments' under 31 U.S.C. 45302, the Secretary hereby instructs the allocation of no less than $521 billion from the ESF for the strategic acquisition of Bitcoin into the SBR, by purchasing debt from suitable counterparties and repaying it in Bitcoin. The Secretary shall collaborate with reputable market participants under agreements designed to 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 in 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 existing relationship between the U.S. government and a reputable and secure custody service provider is sufficient to ensure immediate, trustworthy storage solutions for Bitcoin in the SBR. The Secretary shall instruct that all Bitcoin purchases under the procurement plan be safely transferred to such custody service provider.
In the meantime, 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 protocols (including dedicated hardware, assured 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 SBR custody agreements align with ESF audit procedures, strict cybersecurity standards, and cryptographic reserve proof verifications 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 should serve as a permanent pillar of America's financial strength and commitment to the future of the digital economy, just as the enduring spirit of our nation protects the Fort Knox gold reserves. The Bitcoin held in the SBR should not be viewed as a short-term financial instrument or an emergency fund for everyday situations, but rather as a generational asset that supports the prosperity and security of the United States for decades to come. This is the policy of the United States. The government should hold (HODL) all Bitcoin acquired in the SBR for at least 25 years from the date of this order's issuance.
(b) Strict Limits on Liquidation
Sales or other forms of divestment from the SBR shall only be allowed in the most severe and exceptional circumstances, which clearly exceed typical financial fluctuations or geopolitical uncertainties.
(c) Strict Approval Procedures
Before making any sale, the Secretary of the Treasury shall submit a detailed written determination, accompanied by substantial evidence, demonstrating 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 have the authority to sell, pledge, exchange, or otherwise dispose of any portion 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. Preference should be given to private, phased transactions or other restrained approaches, ensuring 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 transparency regarding 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 for the ESF, the Secretary of the Treasury shall provide details on the status, performance, and strategic advantages of Bitcoin within the ESF. The 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 align with U.S. national security, economic stability, and cybersecurity standards.
