The Bitcoin Policy Institute has drafted an executive order proposing the creation of a strategic Bitcoin reserve under the Trump administration’s U.S. Treasury Department’s Exchange Stabilization Fund (ESF), which would need to be signed after Trump takes office to take effect. . (Preliminary summary: Trump rang the bell at the New York Stock Exchange and shouted: A cryptocurrency strategic reserve like oil will be established, and he was selected as the (Time Magazine) Person of the Year) (Background supplement: The Russian Congress proposed "to include Bitcoin as a strategic reserve asset" (To counter international economic sanctions) Bitcoin can enhance the resilience of the U.S. dollar and support U.S. economic interests. On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing the establishment of a strategic Bitcoin reserve under the Trump administration’s U.S. Treasury Department’s Exchange Stabilization Fund (ESF) (the order would require It will not take effect until Trump takes office and signs it). 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: Pursuant to the authority vested in me by the Constitution and laws of the United States, including Title 31, United States Code, Section 5302, I hereby order as follows: Episode 1 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, limited store of value asset, similar to digital gold, with unique properties that can enhance the resilience of the U.S. dollar and support U.S. economic interests. This Executive Order designates Bitcoin as an asset suitable for strategic acquisition within the Treasury Department’s Exchange Stabilization Fund (ESF), establishing a strategic Bitcoin reserve and serving as a permanent national asset for the benefit of all Americans. Section 2 Policy The policy of the United States is to: 1. Establish a strategic Bitcoin reserve to grow our economy and solidify the future financial dominance of the United States; 2. Designate Bitcoin as a strategic asset held by the U.S. government and expand ESF holdings Diversify assets to ensure national economic security and competitive advantage in the 21st century, and promote industry development by attracting capital, talent and voice; 3. Become a global leader in the digital asset industry and build and expand suite businesses across our great country. Section 3. Establishment of the 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 administered by the Secretary of the Treasury for the purpose of enhancing the diversity of the reserve assets of the United States. To increase confidence in its mission, the SBR will be subject to regular audits, rigorous safety standards and comprehensive reporting measures to ensure long-term accountability and safety. (b) Consolidation of Government Bitcoin Holdings No Bitcoin under the control of any federal agency (including the U.S. Marshals Service) may be sold, exchanged, auctioned, or otherwise pledged for 7 days following the date of this order, and Upon receipt of legal title to such Bitcoins (including upon the issuance of a final, non-appealable judgment in a criminal or civil forfeiture proceeding in favor of the federal agency), the transfer is made to the SBR by the head of that federal agency. (c) Designated Reserve Asset Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of the date of this order, the Secretary of the Treasury is hereby directed to implement a Bitcoin Acquisition Program to acquire and manage Bitcoin within the ESF. The SBR’s goal is to position the United States as the undisputed world leader in Bitcoin ownership, innovation, and management, ensuring that U.S. interests, not those of foreign competitors, set the standard for global digital asset strategy. Section 4. Acquisition and Escrow Agreement (a) Procurement Program Pursuant to 31 U.S.C. 4 5302 which authorizes the Secretary of the Treasury to "process... credit instruments," the Secretary of the Treasury hereby directs that not less than a certain amount shall be appropriated from the ESF in a manner consistent with the obligations imposed by law. $521 billion was used to strategically purchase Bitcoin for inclusion in the SBR by purchasing debt from suitable counterparties and repaying it in Bitcoin. The Treasury Secretary should work with reputable market participants under agreements that maximize value and reduce risk. The initial acquisition plan shall be completed within 365 days of the date of this order. (b) Escrow and Security Protocols To protect the SBR’s Bitcoin holdings at all stages, the Secretary of the Treasury shall implement the following phased escrow framework. Within 30 days of the date of this order, the Secretary shall confirm that the United States Government's existing relationships with reputable and secure custody service providers are sufficient to ensure the provision of immediate, trusted storage solutions for Bitcoin within the SBR.The Secretary should direct that all Bitcoin purchases under the Acquisition Program be securely transferred to such custody service providers. At the same time, the Secretary shall coordinate the development and implementation of self-hosting agreements (including dedicated hardware , guaranteed software, access controls, geo-distribution, multi-signature controls, and physical security measures), designed to enhance long-term security, reduce reliance on third parties, and maintain access to U.S. Bitcoin reserves as a “Digital Fort Knox.” full sovereign control. The Secretary should ensure that the SBR escrow agreement is consistent with ESF audit procedures, rigorous cybersecurity standards, and cryptographic reserve certification verification to safeguard the integrity of the SBR and the confidence of the American public. Section 5 Conditions of Sale of the Strategic Bitcoin Reserve (a) Long-term Storage Principles The SBR shall serve as a permanent pillar of America’s financial strength and commitment to the future of the digital economy, in the same enduring spirit as our nation’s preservation of the Northsburg Gold Reserve. Bitcoin held in the SBR should not be viewed as a short-term financial instrument or a rainy day fund for everyday emergencies, but rather as a generational asset that supports American prosperity and security for decades to come. This is US policy. The Government shall hold (HODL) all Bitcoins acquired in the SBR for at least 25 years from the date of this Order. (b) Strict restrictions on liquidations The sale or other divestment of SBRs will only be permitted under the most severe and exceptional circumstances, which clearly outweigh ordinary financial fluctuations or geopolitical uncertainty. (c) Rigorous Approval Process Before proceeding with any sale, the Secretary of the Treasury shall submit a detailed written determination accompanied by substantial evidence that the proposed liquidation is directly related to an exceptional national economic or security crisis. The decision must be approved by the President of the United States. The Secretary of the Treasury does not have the authority to sell, mortgage, exchange, or otherwise dispose of any portion of the SBR without express authorization. (d) Transparent and controlled execution In the unlikely event that a sale is approved, it should be conducted through the most sensible and tightly controlled methods to minimize market impact and preserve public confidence.Priority should be given to private, staged transactions or other measured approaches that ensure that the country's reputation for financial prudence and responsibility remains intact even in a crisis. Section 6. Reporting and Transparency (a) Public Reserve Attestation The Secretary of the Treasury shall implement a public reserve attestation process using cryptographic attestation. These certifications should be provided on a quarterly basis to ensure transparency of ESF’s Bitcoin holdings while protecting sensitive security information. (b) Annual Report As part of the annual report on the operations of the ESF required by the (Gold Reserve Act), the Secretary of Finance shall provide detailed information on...

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