"Full text of the 'U.S. Strategic Bitcoin Reserve' executive order: Manage BTC as a permanent national asset."

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 Exchange Stabilization Fund (ESF) at the U.S. Department of the Treasury, which requires signature after Trump's inauguration to take effect.

Bitu Research Note: The Bitcoin Policy Institute is a nonpartisan nonprofit organization dedicated to studying the policies and social impacts of Bitcoin and emerging currency networks.

The following is the full text of the executive order:

By the authority vested in me by the Constitution and laws of the United States (including 31 U.S.C. § 5302), 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, similar 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 acquisitions within the Treasury's Exchange Stabilization Fund (ESF), establishes a strategic Bitcoin reserve, and serves as a permanent national asset to benefit all Americans.

Section 2 Policy

The policy of the United States is:

1. Establish a strategic Bitcoin reserve to develop our economy and consolidate 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, establishing and expanding businesses in our great country.

Section 3 Establish SBR and designate Bitcoin as a strategic reserve asset

(a) Establish a strategic Bitcoin reserve

This establishes a strategic Bitcoin reserve (SBR), managed by the Secretary of the Treasury, aimed at enhancing the diversity of U.S. reserve assets. To strengthen confidence in its mission, the SBR will undergo regular audits, adhere to strict security standards, and implement comprehensive reporting measures to ensure long-term accountability and security.

(b) Integrate government Bitcoin holdings

Within 7 days from 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 after obtaining legal ownership of such Bitcoin (including after a final, non-appealable judgment in a civil or criminal forfeiture action favorable to the federal agency), it shall be transferred by the head of that federal agency to SBR.

(c) designated reserve assets

Hereby designating Bitcoin as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days from the date of issuance of this order, the Secretary of the Treasury is hereby instructed 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 the holding, innovation, and management of Bitcoin, ensuring that American interests, rather than those of foreign competitors, set the standards for the global digital asset strategy.

Section 4 Acquisition and Custody Agreement

(a) Procurement Plan

In accordance with the authorization of the Secretary of the Treasury to "handle... credit instruments" under 31 U.S.C. 45302, the Secretary of the Treasury hereby directs that no less than $521 billion be allocated from the ESF for strategic purchases of Bitcoin to be included in the SBR, by purchasing debt from suitable counterparties and repaying in Bitcoin. The Secretary of the Treasury shall collaborate with reputable market participants based on agreements to 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 Protocol

In order 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 existing relationship between the U.S. government and a reputable and secure custody service provider is sufficient to ensure immediate and reliable 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 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 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 over the U.S. Bitcoin reserves as a "digital Fort Knox." The Secretary shall ensure that the SBR custody protocols are consistent with the ESF audit procedures, stringent cybersecurity standards, and cryptographic reserve proof verification to guarantee the integrity of the SBR and the confidence of the American public.

Section 5 Sales Conditions for Strategic Bitcoin Reserves

(a) Long-term preservation principles

SBR should serve as a permanent pillar of America's financial strength and commitment to the future of the digital economy, much like our nation's enduring spirit in protecting the gold reserves at Fort Knox. The Bitcoin held in the SBR should not be viewed as a short-term financial instrument or an emergency fund for everyday situations, 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 should hold (HODL) all Bitcoin acquired in the SBR for at least 25 years from the date of this order.

(b) Strictly restrict liquidation

The sale or other forms of divestment of SBR are only allowed under the most severe and exceptional circumstances, which clearly exceed ordinary financial fluctuations or geopolitical uncertainties.

(c) Strict approval process

Before any sale is made, the Secretary of the Treasury shall submit a detailed written determination, along 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 done through the most sensible and tightly controlled methods to minimize market impact and maintain public confidence. Priority should be given to private, phased transactions or other measured methods to ensure that the State's reputation for financial prudence and responsibility remains intact even in a crisis.

Section 6 Report and Transparency

(a) Public Reserve Certificate

The Minister of Finance should implement a public reserve proof process using cryptographic proofs. These proofs should be provided quarterly to ensure the transparency of the ESF Bitcoin holdings while protecting sensitive security information.

(b) Annual Report

As part of the annual report of the ESF operations required by the Gold Reserve Act, the Secretary of the Treasury shall provide detailed information regarding the status, performance, and strategic advantages of Bitcoin within the ESF. The report should also summarize acquisition strategies, custody security measures, and the impact on economic stability, while considering 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 meets the standards of U.S. national security, economic stability, and cybersecurity.