On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing the establishment of a strategic Bitcoin reserve under the U.S. Treasury's Exchange Stabilization Fund (ESF) during the Trump administration, which needs to be signed after Trump's inauguration to take effect.
Bitcoin Policy Institute Note: The Bitcoin Policy Institute is a non-partisan, non-profit organization dedicated to researching the policy and social implications of Bitcoin and emerging currency networks.
The full text of the executive order is as follows:
By the authority 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, limited-value storage asset, akin to digital gold, with unique attributes 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 designates it 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 grow our economy and consolidate the financial dominance of the United States in the future;
2. Designate Bitcoin as a strategic asset held by the U.S. government, expanding the diversity of assets held by the ESF to ensure national economic security and competitive advantage in the 21st century, and promote industry development by attracting capital, talent, and voices.
3. Become a global leader in the digital asset industry, establishing and expanding enterprises in our great nation.
Section 3 Establish the SBR and designate Bitcoin as a strategic reserve asset
(a) Establish a strategic Bitcoin reserve
Hereby establishes the 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) Consolidate government Bitcoin holdings
Within 7 days of the issuance of this order, any Bitcoin under the control of any federal agency (including the U.S. Marshals Service) shall not be sold, exchanged, auctioned, or otherwise mortgaged, and upon obtaining legal ownership of such Bitcoin (including after a final, unappealable judgment in a civil or criminal forfeiture proceeding favorable to the federal agency), it shall be transferred to the SBR by the head of that federal agency.
(c) Designate reserve assets
Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of the issuance of this order, the Secretary is hereby directed to implement a Bitcoin acquisition plan for the acquisition and management of Bitcoin within the ESF. The goal of the SBR is to position the United States as the undisputed world leader in the holding, innovation, and management of Bitcoin, ensuring that U.S. interests, not those of foreign competitors, set the global digital asset strategic standard.
Section 4 Acquisition and custody protocols
(a) Acquisition plan
Pursuant to the authority granted to the Secretary of the Treasury to 'handle... credit instruments' under 31 U.S.C. 5302, the Secretary hereby directs that in a manner consistent with legal obligations, no less than $521 billion shall be allocated from the ESF for strategic acquisitions of Bitcoin to be included in the SBR, specifically through the purchase of debt from suitable counterparties, repayable in Bitcoin. The Secretary should collaborate with reputable market participants based on agreements that maximize value and minimize risk. The initial acquisition plan should be completed within 365 days of 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 should implement the following phased custody framework. Within 30 days of the issuance of this order, the Secretary should confirm that the U.S. government’s existing relationship with reputable and secure custody service providers is sufficient to ensure the immediate and trustworthy storage solutions for Bitcoin within the SBR. The Secretary should direct that all Bitcoin purchases under the acquisition plan be securely transferred to such custody service providers.
At the same time, the Secretary should coordinate with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology (NIST), and any other agencies as required by the Secretary to develop and implement self-custody protocols (including dedicated hardware, guaranteed software, access controls, geographical distribution, multi-signature controls, and physical security measures) aimed at enhancing long-term security, reducing reliance on third parties, and maintaining full sovereign control of U.S. Bitcoin reserves as a 'digital Fort Knox.' The Secretary should ensure that the SBR custody protocols are consistent with ESF auditing procedures, strict cybersecurity standards, and cryptographic reserve proof verification to guarantee the integrity of the SBR and the confidence of the American public.
Section 5 Conditions for the sale of the strategic Bitcoin reserve
(a) Long-term preservation principles
The SBR should 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 reserves. The Bitcoin held in the SBR should not be viewed as a short-term financial instrument or an emergency fund for everyday contingencies, 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 issuance of this order.
(b) Strict limitations on liquidation
Sales or other forms of divestment from the SBR shall only be allowed under the most severe and exceptional circumstances that clearly exceed ordinary financial fluctuations or geopolitical uncertainties.
(c) Strict approval processes
Before any sale takes place, the Secretary of the Treasury shall submit a detailed written determination with substantial evidence demonstrating 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 shall not have the authority to sell, mortgage, exchange, or otherwise dispose of any part of the SBR without explicit authorization.
(d) Transparent and controlled execution
In rare cases, 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 even in a crisis, 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 should implement a public reserve proof process using cryptographic proofs. These proofs should be provided quarterly to ensure transparency of the ESF's 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 on the status, performance, and strategic advantages of Bitcoin within the ESF. This report should also summarize acquisition strategies, custody security measures, and their impact on economic stability, while considering national economic security.
Section 7 Interagency coordination
The Secretary of the Treasury should 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.
