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:
Episode 1
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 store of value asset, similar 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), establishing a strategic Bitcoin reserve to be maintained as a permanent national asset for the benefit of all Americans.
Section 2. Policies
The U.S. policy is:
1. Build a strategic Bitcoin reserve to grow our economy and solidify America’s future financial dominance;
2. Designate Bitcoin as a strategic asset held by the U.S. government, expand 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, building and scaling businesses across our great nation.
Section 3 Establishing the SBR and Designating Bitcoin as a Strategic Reserve Asset
(a) Building a Strategic Bitcoin Reserve
The Strategic Bitcoin Reserve (SBR) is hereby established to be managed by the Secretary of the Treasury and is intended to enhance the diversity of the United States reserve assets. To provide confidence in its mission, the SBR will be subject to regular audits, rigorous security standards, and comprehensive reporting measures to ensure long-term accountability and security.
(b) Consolidation of government Bitcoin holdings
Within 7 days of the date 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 pledged, and shall be transferred to the SBR by the head of such Federal agency upon acquisition of legal title to such bitcoin (including upon the entry of a final, nonappealable judgment in a criminal or civil forfeiture action in favor of the Federal agency).
(c) Designated reserve assets
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 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 standard for global digital asset strategy.
Section 4. Acquisition and Custody Agreement
(a) Procurement plan
Pursuant to 31 U.S.C. 4 5302, which authorizes the Secretary of the Treasury to “deal with…credit instruments,” the Secretary of the Treasury hereby directs that not less than $521 billion be appropriated from the ESF for the strategic purchase of bitcoin for inclusion in the SBR, in a manner consistent with obligations under law, by purchasing obligations from appropriate counterparties to be repaid in bitcoin. The Secretary of the Treasury shall work with reputable market participants on an agreement that maximizes value and mitigates risk. The initial acquisition program shall be completed within 365 days of the date of this order.
(b) Escrow and Security Agreement
To safeguard SBR’s bitcoin holdings at all stages, the Secretary of the Treasury shall implement the following phased custody framework. Within 30 days of the date 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 an immediate, trusted storage solution for bitcoin within SBR. The Secretary shall direct that all bitcoin purchases under the acquisition program be securely transferred to such custody service providers.
In parallel, 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 agencies requested by the Secretary to develop and implement self-custody protocols (including dedicated hardware, assured software, access controls, geographic distribution, multi-signature controls, and physical security measures) designed to enhance long-term security, reduce reliance on third parties, and maintain full sovereign control over the U.S. Bitcoin Reserve as a “digital Fort Knox.” The Secretary shall ensure that the SBR custody protocol is consistent with the ESF audit process, rigorous cybersecurity standards, and cryptographic proof of reserve verification to ensure the integrity of the SBR and the confidence of the American public.
Section 5. Conditions for the sale of the Strategic Bitcoin Reserve
(a) Principle of long-term preservation
The SBR should serve as a permanent pillar of America's financial strength and commitment to the future of the digital economy, in the same enduring spirit that preserved our nation's gold reserve at Fort North. 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 America's prosperity and security for decades to come. It is the policy of the United States. The Government shall hold (HODL) all Bitcoin acquired in the SBR for at least 25 years after the date of this order.
(b) Strict restrictions on liquidation
The sale or other divestment of SBRs would be permitted only in the most severe and exceptional circumstances, which clearly exceed ordinary financial volatility or geopolitical uncertainty.
(c) Strict approval process
Before any sale is made, the Secretary of the Treasury shall submit a detailed written determination, accompanied by substantial evidence, demonstrating that the proposed liquidation is in direct response to an extraordinary national economic or security crisis. The determination must be approved by the President of the United States. The Secretary of the Treasury shall not be authorized to sell, pledge, exchange, or otherwise dispose of any portion of the SBR without express authorization.
(d) Transparent and controlled implementation
In the rare cases where a sale is approved, it should be conducted through the most sensible and tightly controlled methods to minimize market impact and maintain public confidence. Private, phased transactions or other measured approaches should be preferred, ensuring that even in a crisis, the country's reputation for financial prudence and responsibility remains intact.
Section 6. Reporting and transparency
(a) Public Reserve Certificate
The Secretary of the Treasury should implement a public reserve certification process using cryptographic proofs. These proofs should be provided on a quarterly basis to ensure transparency of the 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 the Treasury shall provide detailed information on the status, performance, and strategic advantages of Bitcoin within the ESF. The report shall also summarize the acquisition strategy, custodial security measures, and the impact on economic stability, subject to considerations of national economic security.
Section 7 Inter-agency 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 is consistent with U.S. national security, economic stability, and cybersecurity standards.
