Bitcoin can enhance the resilience of the dollar and support American economic interests.
Article author: @DavidFBailey
Source: Platform X
Article translation: BitpushNews
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 needs to be signed after Trump assumes office to take effect.
Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to researching the policy and social implications 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 31 U.S.C. § 5302), 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 store of value asset, akin to digital gold, possessing unique attributes that can enhance the resilience of the dollar and support American economic interests.
This executive order designates Bitcoin as an asset suitable for strategic acquisition within the Treasury's Exchange Stabilization Fund (ESF), establishes a strategic Bitcoin reserve, and serves as a permanent national asset benefiting all Americans.
Section 2 Policy
The policy of the United States is:
1. Establish a 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 growth 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 Establish SBR and designate Bitcoin as a strategic reserve asset
(a) Establish strategic Bitcoin reserves
Hereby establishes 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, stringent security standards, and comprehensive reporting measures to ensure long-term accountability and security.
(b) Integrate government Bitcoin holdings
Within 7 days of this order's issuance, no Bitcoin under the control of any federal agency (including the U.S. Marshals Service) shall be sold, exchanged, auctioned, or otherwise collateralized, and upon obtaining legal ownership of such Bitcoin (including after a final, unappealable judgment in a criminal or civil forfeiture proceeding favorable to a federal agency), it shall be transferred by the head of that federal agency to the SBR.
(c) Designate reserve assets
Hereby designating Bitcoin as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of this order's issuance, the Secretary of the Treasury is hereby directed 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 world leader in Bitcoin holding, innovation, and management, ensuring that U.S. interests, rather than those of foreign competitors, set the standard for the global digital asset strategy.
Section 4 Acquisition and Custody Agreement
(a) Procurement Plan
Pursuant to the authority of the Secretary of the Treasury to 'manage... credit instruments' under 31 U.S.C. § 5302, the Secretary of the Treasury hereby directs that not less than $521 billion be allocated from the ESF for the strategic purchase of Bitcoin to be included in the SBR, by purchasing debt from suitable 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 this order's issuance.
(b) Custody and Security Agreement
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 this order's issuance, the Secretary shall confirm that the existing relationship of the U.S. government with reputable and secure custody service providers is sufficient to ensure immediate, reliable storage solutions for Bitcoin in 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 shall coordinate with the National Security Agency, 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 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 U.S. Bitcoin reserves as a 'digital Fort Knox.' The Secretary shall ensure that the SBR custody agreements align with ESF audit procedures, stringent cybersecurity standards, and cryptographic reserve proof validation to safeguard the integrity of the SBR and the confidence of the American public.
Section 5 Conditions for the sale of strategic Bitcoin reserves
(a) Long-term preservation principles
The SBR shall serve as a permanent pillar of U.S. financial strength and commitment to the future of the digital economy, akin to the enduring spirit with which our nation safeguards the Fort Knox gold reserves. 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's issuance.
(b) Strictly limit liquidation
Sales or other forms of divestment from the SBR shall only be permitted in the most severe and exceptional circumstances, which clearly exceed normal financial volatility or geopolitical uncertainty.
(c) Strict approval procedures
Prior to conducting 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. The Secretary of the Treasury shall not sell, mortgage, exchange, or otherwise dispose of any part of the SBR without explicit authorization.
(d) Transparent and controlled execution
In very rare cases, if a sale is approved, it should be conducted in the most prudent and strictly controlled manner to minimize market impact and maintain public confidence. Private, phased transactions or other restrained methods should be prioritized to ensure that the reputation of the nation in financial prudence and responsibility remains intact even in times of crisis.
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 of the ESF's Bitcoin holdings while protecting sensitive security information.
(b) Annual report
As part of the annual report required by the Exchange Stabilization Fund 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, taking into account national economic security.
Section 7 Inter-agency coordination
The Secretary of the Treasury shall coordinate with the Federal Reserve, Department of Defense, and other relevant federal agencies to ensure that the acquisition and management of Bitcoin within the ESF adhere to U.S. national security, economic stability, and cybersecurity standards.
