Written by: Golden Finance
The strategic Bitcoin reserve in the United States is highly likely to come to fruition.
On December 12, 2024, after ringing the bell at the New York Stock Exchange, Trump confirmed in an interview with CNBC that the United States should establish a strategic cryptocurrency reserve similar to oil.
In the early morning of December 18, 2024, a draft of the "Strategic Bitcoin Reserve" executive order, drafted by the Bitcoin Policy Institute, circulated in the industry. The full title of this executive order is "Executive Order on Designating Bitcoin as a Strategic Reserve Asset within the Exchange Stabilization Fund."
According to media reports, this executive order aims to "designate Bitcoin as a strategic reserve asset," and it can take effect as soon as Trump signs it on his first day in office.
Golden Finance compiled the full text of the executive order draft drafted by the Bitcoin Policy Institute, as follows:
(Executive Order on Designating Bitcoin as a Strategic Reserve Asset within the Exchange Stabilization Fund)
By the authority vested in me as President of the United States by the Constitution and laws of the United States, including Title 31, Section 5302 of the U.S. Code, I hereby order as follows:
Section One: 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 and limited supply means of value storage, akin to digital gold, and its unique properties 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) and establishes a strategic Bitcoin reserve as a permanent national asset benefiting all American people.
Section Two: Policy
The policy of the United States is as follows:
1. Establish a strategic Bitcoin reserve to promote our economic growth and reinforce America's long-term financial dominance;
2. Designate Bitcoin as a strategic asset held by the U.S. government, ensuring national economic security and competitive advantage in the 21st century by expanding the diversity of assets held in the Exchange Stabilization Fund;
3. Establish and develop the United States as a global leader in the digital asset industry by attracting capital, talent, and sound businesses.
Section Three: Establishment of the Strategic Bitcoin Reserve (SBR) and Designation of Bitcoin as a Strategic Reserve Asset
(a) Establishment of the strategic Bitcoin reserve. The strategic Bitcoin reserve (SBR) is hereby established, to be managed by the Secretary of the Treasury, aiming to enhance the diversity of U.S. reserve assets. To bolster confidence in this reserve, the strategic Bitcoin reserve 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-held Bitcoin. Within 7 days of the issuance of this order, any Bitcoin controlled by federal agencies (including the U.S. Marshals Service) shall not be sold, exchanged, auctioned, or otherwise mortgaged, and the legal ownership of such Bitcoin (including final, unappealable judgments in criminal or civil forfeiture actions where the federal government prevails) shall be transferred by the head of the federal agency to the strategic Bitcoin reserve.
(c) Designated as a reserve asset. Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the Exchange Stabilization Fund. Within 60 days of the issuance of this order, the Secretary of the Treasury shall immediately implement an acquisition plan to acquire and manage Bitcoin within the Exchange Stabilization Fund. The goal of the strategic Bitcoin reserve is to establish the United States' undisputed leadership in this area.
Section Four: Acquisition and Custody Agreements
(a) Acquisition plan. Pursuant to Title 31, Section 5302 of the U.S. Code, which authorizes the Secretary of the Treasury to "engage in transactions involving credit instruments...", the Secretary of the Treasury is now directly authorized to incorporate Bitcoin into the strategic Bitcoin reserve by purchasing debt obligations from suitable counterparties, within the limits of relevant legal provisions and not exceeding the $21 billion allocated for strategic acquisitions from the Exchange Stabilization Fund. This initial acquisition plan should be completed within 365 days of the issuance of this order.
(b) Custody and security agreement. To ensure the safe custody of Bitcoin at all stages, the Secretary of the Treasury shall implement the following phased framework. Within 30 days of the issuance of this order, the Secretary of the Treasury shall confirm existing relationships between the U.S. government and reputable, secure custodial service providers to ensure immediate and reliable storage of Bitcoin in the strategic Bitcoin reserve. The Secretary of the Treasury shall direct that all Bitcoin purchased under the acquisition plan be securely transferred to such custodial service providers.
At the same time, the Secretary of the Treasury shall develop and implement measures—in collaboration with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology (NIST), and other agencies as required by the Secretary of the Treasury's self-custody agreements (including specialized hardware, reliable software, access controls, geographic distribution, multi-signature controls, and physical security measures)—aimed at enhancing long-term security, reducing third-party dependencies, and maintaining the United States' Bitcoin reserve under complete sovereign control as a "digital Fort Knox." The Secretary of the Treasury shall ensure that the strategic Bitcoin reserve custody agreements comply with Exchange Stabilization Fund audit procedures, rigorous cybersecurity standards, and cryptographic evidence verification to guarantee the dual integrity of the strategic Bitcoin reserve and public confidence in the United States.
Section Five: Conditions for the Sale of the Strategic Bitcoin Reserve
(a) Long-term preservation principle. The strategic Bitcoin reserve shall serve as a permanent pillar of U.S. financial strength and commitment to the future digital economy, in the spirit of defending our Fort Knox gold reserve. Bitcoin stored in the strategic Bitcoin reserve should not be viewed as a short-term financial asset. Its goal is to establish the strategic Bitcoin reserve as the United States' leading position in global Bitcoin holdings, innovation, and management—ensuring the interests of the United States, not foreign competitors, and setting standards for the global digital asset strategy.
(b) Strict liquidity restrictions. The sale or other forms of strategic Bitcoin reserve fund recovery are only permitted in the most extreme and special national economic or security crises. Such a crisis determination must be approved by the President of the United States. Without this explicit authorization, the Secretary of the Treasury has no authority to sell, mortgage, exchange, or otherwise dispose of any portion of the strategic Bitcoin reserve.
(c) Strict approval procedures. Before any sale, the Secretary of the Treasury shall submit a detailed written determination, accompanied by sufficient evidence, demonstrating that the proposed sale directly addresses a special national economic or security crisis.
(d) Transparent and controlled execution. In rare cases, if a sale is approved, it should be conducted in the most fair and strictly controlled manner to minimize market impact and maintain public confidence. Priority should be given to private, staggered transactions or other measures to ensure that even during a crisis, the nation's reputation for financial prudence and accountability is preserved.
Section Six: Reporting and Transparency
(a) Public verification of reserves. The Secretary of the Treasury shall implement a public reserve verification process utilizing cryptographic authentication. These verifications shall be conducted quarterly to ensure transparency regarding Bitcoin holdings within the Exchange Stabilization Fund while protecting sensitive information.
(b) Annual report. As part of the annual report on the operation of the Exchange Stabilization Fund (as required by the Gold Reserve Act), the Secretary of the Treasury shall provide detailed information on the status, performance, and strategic benefits of Bitcoin within the Exchange Stabilization Fund. The report shall also summarize acquisition strategies, custody security measures, and any impact on economic stability (considering national economic or security factors).
Section Seven: Interagency Coordination
The Secretary of the Treasury shall coordinate with the Federal Reserve Board, the Department of Defense, and other relevant federal agencies to ensure that the acquisition and management of Bitcoin within the Exchange Stabilization Fund align with U.S. national security, economic stability, and cybersecurity standards.
Hereby certify, I have signed this on [Year] [Month] [Date], in the year of the founding of the United States [Year], and [Year] years of independence.
