Dennis Porter, founder of the Satoshi Action Fund, has revealed a draft of an executive order for President-elect Donald Trump to establish a Strategic Bitcoin (BTC) Reserve within the Exchange Stabilization Fund (ESF). The order permits an initial allocation of up to 2% of the ESF’s total portfolio value over an 18-month pilot period.
Additionally, it would use BTC in US government custody as the foundation for the Reserve. The draft executive order outlines a plan for incorporating Bitcoin into the ESF, a fund traditionally used to stabilize the US dollar and respond to macroeconomic shocks. It also outlines a framework for integrating Bitcoin as a foreign-currency-like reserve asset while ending the auction of confiscated Bitcoin held by US authorities.
The draft proposes that the US Treasury acquires, holds, and manages Bitcoin as part of the ESF portfolio, treating it similarly to foreign reserves like gold or foreign currencies. The Treasury would also establish a working group to develop custody systems for secure management of Bitcoin holdings.
Approximately 200,000 BTC currently in US custody, valued at $20.6 billion at $103,000 per Bitcoin, would serve as the initial foundation of the Strategic Bitcoin Reserve. The draft includes oversight mechanisms to balance innovation with accountability, such as semiannual reports from the Treasury detailing Bitcoin transactions, holdings, and risk management strategies to Congress and the President.
The draft acknowledges that the ESF may not be a permanent solution for Bitcoin reserves. Within 24 months, the Treasury would deliver a comprehensive report to Congress outlining the limitations and benefits of using the ESF as a Bitcoin custodian, alternative frameworks for reserve management, and legislative recommendations to enshrine the Strategic Bitcoin Reserve into US federal law.
The proposal emphasizes that creating a Bitcoin reserve would not interfere with the Federal Reserve’s independence in setting monetary policy. It aims to hedge against macroeconomic risks, stabilize the dollar, and position the US as a leader in financial innovation. If the draft is enacted, it would mark the largest government-led embrace of Bitcoin to date, with significant implications for the digital asset industry, US economic policy, and global reserve practices.
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