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 global economic stability and leadership. Bitcoin is a decentralized, limited value storage asset, akin to digital gold, with unique properties 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 Department'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:
Establish a strategic Bitcoin reserve to develop our economy and solidify America's financial dominance for the future;
2. Designate Bitcoin as a strategic asset held by the U.S. government to diversify the assets held by the ESF, ensuring national economic security and competitive advantage in the 21st century, and promote industry development by attracting capital, talent, and voices;
3. To become a global leader in the digital asset industry, establishing 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 establishing 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, strict security standards, and 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) may be sold, exchanged, auctioned, or otherwise mortgaged, and upon the legal acquisition of such Bitcoin (including final, unappealable judgments in favor of federal agencies in criminal or civil forfeiture cases), it shall be transferred to the SBR by the head of the federal agency.
(c) Designate reserve assets
Hereby designating Bitcoin as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of the issuance of this order, 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 global leader in the holding, innovation, and management of Bitcoin, ensuring that American interests, not those of foreign competitors, set the standards for the global digital asset strategy.
Section 4 Acquisition and Custody Agreements
(a) Procurement plan
Pursuant to the authority of the Secretary of the Treasury to "manage... credit instruments" under 31 U.S.C. 4 5302, the Secretary hereby directs that not less than $521 billion be allocated from the ESF for the strategic acquisition of Bitcoin to be incorporated into the SBR, by purchasing debt from suitable counterparties and repaying in Bitcoin. The Secretary shall work with reputable market participants to maximize value and reduce risk. The initial acquisition plan should be completed within 365 days from the issuance of this order.
(b) Custody and security agreements
In order 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 has existing relationships with reputable and secure custody service providers 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 shall coordinate with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology (NIST), and any other agency as required by the Secretary to develop and implement self-custody agreements (including dedicated hardware, guaranteed software, access controls, geographical 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 auditing procedures, stringent cybersecurity standards, and cryptographic reserve proof verification to guarantee the integrity of the SBR and public confidence in the United States.
Section 5 Conditions for Sale of Strategic Bitcoin Reserves
(a) Long-term preservation principles
The SBR should serve as a permanent pillar of American financial strength and commitment to the future of the digital economy, akin to our nation's enduring spirit of safeguarding 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 supporting 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.
(b) Strict limitations on liquidation
Sales or other forms of divestment of SBR should only be allowed in the most severe and extraordinary circumstances that clearly exceed ordinary financial volatility or geopolitical uncertainty.
(c) Strict approval procedures
Before making any sale, the Secretary of the Treasury must submit a detailed written determination accompanied by a substantial amount of evidence demonstrating that the proposed liquidation is directly aimed at addressing a specific national economic or security crisis. This determination must be approved by the President of the United States. The Secretary of the Treasury is not authorized to sell, mortgage, exchange, or otherwise dispose of any part of the SBR without explicit authorization.
(d) Transparent and controlled execution
In rare circumstances, if a sale is approved, it should be conducted in the wisest and most tightly controlled manner to minimize market impact and maintain public confidence. Private, phased transactions or other restrained methods should be prioritized to ensure that the nation's reputation for 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 (Gold Reserve Act) ESF operations, the Secretary of the Treasury shall provide details on the state, performance, and strategic advantages of Bitcoin within the ESF. The report should also summarize acquisition strategies, custody security measures, and their 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.
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