Article Reprint Source: Bitpush
Compiled by: BitpushNews
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. Department of the Treasury Exchange Stabilization Fund (ESF), which requires signature after Trump's inauguration to take effect.
Bitpush Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to studying the policy and social impact of Bitcoin and emerging currency networks.
The full text of the executive order is as follows:
Pursuant to the powers vested in me by the Constitution and laws of the United States (including Section 5302 of Title 31 of the U.S. Code), I hereby order 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 stability and leadership in the global economy. Bitcoin is a decentralized, finite 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 Department of the Treasury's Exchange Stabilization Fund (ESF), establishing 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 secure America's financial leadership for the future;
2. Designate Bitcoin as a strategic asset held by the U.S. government, expanding the asset diversity held by the ESF to safeguard national economic security and competitive advantages for the 21st century, and promote industry development by attracting capital, talent, and voices;
3. To become a global leader in the digital assets industry and establish and expand 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 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, stringent security standards, and comprehensive reporting measures to ensure long-term accountability and security.
(b) Consolidation of 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) shall be sold, exchanged, auctioned, or otherwise pledged, and upon obtaining legal title to such Bitcoin (including after a final, non-appealable judgment in a criminal or civil forfeiture action favorable to 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 acquisition 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 world leader in Bitcoin holding, innovation, and management, ensuring that American interests, rather than those of foreign competitors, set the standards for the global digital asset strategy.
Section 4 Acquisition and Custody Agreements
(a) Acquisition Plan
Pursuant to the authority granted to the Secretary of the Treasury to 'manage... credit instruments' under 31 U.S.C. 45302, the Secretary hereby directs that no less than $521 billion be allocated from the ESF for the strategic acquisition of Bitcoin to be included in the SBR, by purchasing debt from suitable counterparties and repaying in Bitcoin. The Secretary shall collaborate with reputable market participants in agreements that maximize value and minimize risk. The initial acquisition plan shall be completed within 365 days of the issuance of this order.
(b) Custodial and Security Protocols
To protect the Bitcoin holdings of the SBR at all stages, the Secretary of the Treasury shall implement the following phased custodial framework. Within 30 days of the issuance of this order, the Secretary shall confirm that the existing relationship between the U.S. government and a reputable and secure custodian is sufficient to ensure the provision of 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 custodial 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 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 U.S. Bitcoin reserves as a 'digital Fort Knox.' The Secretary shall ensure that the SBR custodial protocols are consistent with ESF audit procedures, stringent cybersecurity standards, and cryptographic reserve proof verifications to guarantee the integrity of the SBR and the confidence of the American public.
Section 5 Conditions for Sale of the 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, in the enduring spirit of our nation's protection of the Fort Knox gold reserve. Bitcoin held in the SBR should not be viewed as a short-term financial tool or an emergency fund for everyday situations, but rather as a generational asset supporting American 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 issuance of this order.
(b) Strict Limits on Liquidation
The sale or other forms of divestment of the SBR shall only be permitted in the most severe and exceptional circumstances that clearly exceed ordinary financial volatility or geopolitical uncertainty.
(c) Strict Approval Procedures
Before any sale, the Secretary of the Treasury shall submit a detailed written determination accompanied by substantial evidence demonstrating that the proposed liquidation directly addresses a special national economic or security crisis. This determination must be approved by the President of the United States. The Secretary of the Treasury shall not sell, pledge, exchange, or otherwise dispose of any portion of the SBR without explicit authorization.
(d) Transparent and Controlled Execution
In rare instances, if the sale is approved, it shall be conducted in the most prudent and tightly controlled manner to minimize market impact and maintain public confidence. Private, phased transactions or other restrained methods shall be prioritized, ensuring that even in crises, the nation's reputation for financial prudence and responsibility remains intact.
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 the transparency of the ESF Bitcoin holdings while safeguarding sensitive security information.
(b) Annual Report
As part of the annual report required by the ESF Operations Annual Report (as required by the Gold Reserve Act), the Secretary of the Treasury shall provide detailed information on the status, performance, and strategic advantages of Bitcoin within the ESF. This report shall also summarize acquisition strategies, custodial security measures, and the 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.
