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 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 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 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 to expand the diversity of assets held by the ESF, safeguarding national economic security and competitive advantage in the 21st century, while promoting industry development through attracting capital, talent, and voice;
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 Strategic Bitcoin Reserve
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 bolster confidence in its mission, the SBR will undergo regular audits, strict security standards, and comprehensive reporting measures, ensuring long-term accountability and security.
(b) Consolidate Government Bitcoin Holdings
Within 7 days from 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 pledged, and upon obtaining legal ownership of such Bitcoin (including after a final, unappealable judgment in a criminal or civil forfeiture proceeding in favor of the federal agency), the head of that federal agency shall transfer it to the SBR.
(c) Designated Reserve Assets
Hereby designates Bitcoin as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days from the issuance of this order, the Secretary of the Treasury is 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 Bitcoin holding, innovation, and management, ensuring that American 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 under 31 U.S.C. 5302 to 'handle… credit instruments', the Secretary of the Treasury is hereby directed to allocate no less than $521 billion from the ESF for strategic procurement of Bitcoin to be included in the SBR, by purchasing debts from suitable counterparties and repaying in Bitcoin. The Secretary shall collaborate with reputable market participants under agreements that maximize value and minimize risk. The initial acquisition plan should be completed within 365 days from the issuance of this order.
(b) Custody and Security Protocols
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 from the issuance of this order, the Secretary shall confirm that the U.S. government's existing relationships with reputable and secure custody service providers are sufficient to ensure immediate and reliable 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, Cybersecurity and Infrastructure Security Agency, 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, 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 the U.S. Bitcoin Reserve as a 'digital Fort Knox'. The Secretary shall ensure that SBR custody protocols are consistent with ESF audit procedures, stringent cybersecurity standards, and cryptographic reserve proof verification to ensure the integrity of the SBR and the confidence of the American public.
Section 5 Conditions for Sale of Strategic Bitcoin Reserve
(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 shall not be viewed as a short-term financial instrument or an emergency fund for day-to-day situations, 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.
(b) Strict Limitation on Liquidation
Selling or otherwise divesting from the SBR shall only be permitted in the most severe and exceptional circumstances, which clearly exceed ordinary financial volatility or geopolitical uncertainty.
(c) Strict Approval Procedures
Before any sale is conducted, the Secretary of the Treasury shall submit a detailed written determination, accompanied by substantial evidence, showing 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 is not authorized to sell, mortgage, exchange, or otherwise dispose of any portion of the SBR without explicit authorization.
(d) Transparent and Controlled Execution
In rare instances, 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. Private, phased transactions or other measured approaches 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 ESF Bitcoin holdings while protecting sensitive security information.
(b) Annual Report
As part of the annual report required by the (Gold Reserve Act) for the operation of the ESF, 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 impacts on economic stability, taking into account national economic security.
Section 7 Interagency 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 comply with U.S. national security, economic stability, and cybersecurity standards.
