Executive Order on the "U.S. Strategic Bitcoin Reserve": Managing BTC as a Permanent National Asset
TechFlow Selected TechFlow Selected
Executive Order on the "U.S. Strategic Bitcoin Reserve": Managing BTC as a Permanent National Asset
Bitcoin can enhance the resilience of the dollar and support U.S. economic interests.
Navigating Web3 tides with focused insightsCompiled by: BitpushNews
On December 17, 2024, the Bitcoin Policy Institute drafted an executive order proposing the establishment of a Strategic Bitcoin Reserve under the Exchange Stabilization Fund (ESF) of the U.S. Department of the Treasury in a potential Trump administration. The order would require signing upon Trump's inauguration to take effect.
Bitpush Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to studying the policy and societal impacts of Bitcoin and emerging monetary networks.
Full text of the executive order below:
By the authority vested in me by the Constitution and 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 adapt its financial strategy to maintain stability and leadership in the world economy. Bitcoin, a decentralized and finite store of value akin to digital gold, possesses 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 Treasury’s Exchange Stabilization Fund (ESF), establishes a Strategic Bitcoin Reserve, and positions it as a permanent national asset for the benefit of all Americans.
Section 2 Policy
It shall be the policy of the United States to:
1. Establish 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, broaden 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 innovation;
3. Become the global leader in the digital asset industry, building and expanding enterprises within our great nation.
Section 3 Establishment of SBR and Designation of Bitcoin as a Strategic Reserve Asset
(a) Establishment of the Strategic Bitcoin Reserve
The Strategic Bitcoin Reserve (SBR) is hereby established and shall be managed by the Secretary of the Treasury with the aim of enhancing the diversification of U.S. reserve assets. To strengthen confidence in its mission, the SBR shall be subject to regular audits, rigorous security standards, and comprehensive reporting measures to ensure long-term accountability and safety.
(b) Consolidation of Government Bitcoin Holdings
Within seven days of the issuance of this order, no federal agency (including the U.S. Marshals Service) shall sell, exchange, auction, or otherwise encumber any Bitcoin under its control. Upon obtaining lawful ownership of such Bitcoin—including following a final, non-appealable judgment in criminal or civil forfeiture proceedings favorable to a federal agency—the head of the agency shall transfer the Bitcoin to the SBR.
(c) Designation as Reserve Asset
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 of the Treasury is directed to implement a Bitcoin acquisition program to acquire and manage Bitcoin within the ESF. The SBR aims to position the United States as the undisputed global leader in Bitcoin ownership, innovation, and stewardship, ensuring that American interests—not those of foreign competitors—set the standard for global digital asset strategy.
Section 4 Acquisition and Custody Protocols
(a) Procurement Program
Pursuant to 31 U.S.C. § 5302, which authorizes the Secretary of the Treasury to “deal in…credit instruments,” the Secretary is hereby directed to allocate no less than $521 billion from the ESF toward the strategic procurement of Bitcoin for inclusion in the SBR, through purchasing debt from appropriate counterparties and repaying in Bitcoin-denominated terms. The Secretary shall collaborate with reputable market participants under agreements designed to maximize value and minimize risk. The initial acquisition program shall be completed within 365 days of the issuance of this order.
(b) Custody and Security Protocols
To safeguard the SBR’s Bitcoin holdings at all stages, the Secretary shall implement the following phased custody framework. Within 30 days of the issuance of this order, the Secretary shall confirm that existing arrangements between the U.S. government and reputable, secure custodial service providers are sufficient to ensure immediate, trusted storage solutions for Bitcoin within the SBR. The Secretary shall direct that all Bitcoin purchases under the acquisition program be securely transferred to such custodial providers.
Concurrently, the Secretary shall coordinate with the National Security Agency (NSA), the Cybersecurity and Infrastructure Security Agency (CISA), the National Institute of Standards and Technology (NIST), and any other agencies as deemed necessary to develop and implement self-custody protocols—including dedicated hardware, audited software, access controls, geographic distribution, multi-signature mechanisms, 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 SBR custody protocols align with ESF audit procedures, stringent cybersecurity standards, and cryptographic proof-of-reserves verification to guarantee the integrity of the SBR and public confidence.
Section 5 Conditions for Sale of the Strategic Bitcoin Reserve
(a) Principle of Long-Term Preservation
The SBR shall serve as a permanent pillar of American financial strength and commitment to the future of the digital economy, mirroring the enduring spirit with which our nation protects the gold reserves at Fort Knox. Bitcoin held in the SBR should not be treated as a short-term financial instrument or an emergency fund for routine contingencies, but rather as an intergenerational asset supporting decades of American prosperity and security. It is the policy of the United States that the government shall hold (HODL) all Bitcoin acquired into the SBR for a minimum of 25 years from the date of this order.
(b) Strict Limitations on Liquidation
Sales or dispositions of the SBR shall only be permitted under the most severe and exceptional circumstances—situations clearly exceeding ordinary financial volatility or geopolitical uncertainty.
(c) Rigorous Approval Process
Prior to any sale, the Secretary of the Treasury shall submit a detailed written determination, supported by substantial evidence, demonstrating that the proposed liquidation directly addresses an exceptional national economic or security crisis. Such determination must be approved by the President of the United States. The Secretary of the Treasury shall have no authority to sell, pledge, exchange, or otherwise dispose of any portion of the SBR without explicit authorization.
(d) Transparent and Controlled Execution
In the rare event that a sale is approved, it shall be conducted through the most prudent and tightly controlled methods to minimize market impact and preserve public confidence. Private, phased transactions or other restrained approaches shall be prioritized, ensuring that even in times of crisis, the nation’s reputation for financial prudence and responsibility remains intact.
Section 6 Reporting and Transparency
(a) Public Proof of Reserves
The Secretary of the Treasury shall implement a public proof-of-reserves process using cryptographic verification. These proofs shall 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 on ESF operations required under the Gold Reserve Act, the Secretary of the Treasury shall provide detailed information regarding the status, performance, and strategic advantages of Bitcoin held within the ESF. The report shall also summarize acquisition strategies, custody security measures, and impacts on economic stability, subject to considerations of 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 are aligned with U.S. national security, economic stability, and cybersecurity standards.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@DavidFBailey
