Author: Golden Finance
The United States’ strategic Bitcoin reserve is highly likely to come true.
On December 12, 2024, after ringing the bell at the New York Stock Exchange, Trump confirmed in an interview with CNBC that the United States should establish a strategic reserve for cryptocurrencies similar to oil.
In the early morning of December 18, 2024, the initial draft of the ‘Executive Order on Designating Bitcoin as a Strategic Reserve Asset within the Exchange Stabilization Fund’ circulated in the industry, which was drafted by The Bitcoin Policy Institute. This executive order aims to designate Bitcoin as a strategic reserve asset within the Exchange Stabilization Fund.
According to media reports, this presidential executive order aims to “designate Bitcoin as a strategic reserve asset”, and it will take effect as soon as Trump signs it on his first day in office.
Jinse Finance has compiled the full text of the draft executive order drafted by the US Bitcoin Policy Research Institute, as follows:
Administrative Order on Designating Bitcoin as Strategic Reserve Assets in Foreign Exchange Stability Fund
Pursuant to the powers vested in me as President of the United States by the United States Constitution and the laws of the United States, including section 5302 of title 31 of the United States 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, a decentralized and limited-value store of value, similar to digital gold, has unique attributes that can enhance the resilience of the US dollar and support US economic interests. This executive order designates Bitcoin as an eligible asset for strategic acquisitions within the Treasury Department’s Exchange Stabilization Fund (ESF) and establishes a strategic Bitcoin reserve as a permanent national asset for the benefit of all Americans.
Section 2: Policies
The policy of the United States is as follows:
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Establish a strategic Bitcoin reserve to promote our country’s economic growth and strengthen the long-term financial dominance of the United States;
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Designate Bitcoin as a strategic asset held by the US government, and ensure the national economic security and competitive advantage of the United States in the 21st century by expanding the diversity of assets held in the foreign exchange stabilization fund.
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Build and develop by attracting capital, talent, and sound enterprises, making the United States a global leader in the digital asset industry.
Section 3: Establishment of Strategic Bitcoin Reserves (SBR) and Designation of Bitcoin as a Strategic Reserve Asset
(a) The establishment of the strategic Bitcoin reserve. The Strategic Bitcoin Reserve (SBR) is established, managed by the Secretary of the Treasury, aimed at diversifying the United States’ reserve assets. To enhance confidence in the reserve, the strategic Bitcoin reserve will undergo regular audits, strict security standards, and comprehensive reporting measures to ensure long-term accountability and security.
(b) Integrate the government-held bitcoins. Within 7 days from the date of this order, bitcoins controlled by federal agencies (including the US Marshals Service) may not be sold, exchanged, auctioned, or otherwise encumbered, and the legal ownership of such bitcoins (including in criminal or civil forfeiture actions resulting in a final, unappealable judgment in favor of the federal government) shall be transferred to the custodian of the Strategic Bitcoin Reserve by the responsible official of the federal agency.
© Designated as reserve assets. Bitcoin is designated as a strategic reserve asset suitable for purchase and holding within the Foreign Exchange Stabilization Fund. Within 60 days from the date of this order, the Secretary of the Treasury shall promptly implement a program to acquire and manage Bitcoin within the Foreign Exchange Stabilization Fund. The objective of the strategic Bitcoin reserve is to establish the United States’ undisputed leadership in this regard.
Section 4: Acquisition and Custody Agreement
(a) Acquisition plan. Pursuant to Title 31, Section 5302 of the United States Code, which authorizes the Secretary of the Treasury to ‘deal in credit instruments…,’ the Secretary of the Treasury is hereby authorized, subject to applicable legal requirements and not exceeding the limit of $21 billion allocated from the Exchange Stabilization Fund for strategic purchases, to acquire bitcoin by purchasing debt obligations from suitable counterparties to include bitcoin in the strategic bitcoin reserve. This initial acquisition plan should be completed within 365 days from the date of this order.
(b) Custody and Security Protocol. To ensure the custody and security of Bitcoin at all stages, the Secretary of the Treasury shall implement the following phased framework. Within 30 days of the date of this order, the Secretary of the Treasury shall confirm the relationship with existing reputable and secure custodial service providers of the United States government to ensure immediate and reliable storage of Bitcoin in the strategic Bitcoin reserve. The Secretary of the Treasury shall instruct that all Bitcoin purchased under the acquisition plan be safely transferred to such custodial service providers.
At the same time, the Secretary of the Treasury should develop and implement measures in coordination with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the National Institute of Standards and Technology (NIST), and other entities required by the Secretary of the Treasury’s self-custody agreement (including specialized hardware, reliable software, access control, geographic distribution, multi-signature control, and physical security measures) aimed at enhancing long-term security, reducing reliance on third parties, and maintaining the complete sovereign control of the United States’ Bitcoin reserves as a “digital fortress.” The Secretary of the Treasury should ensure that the strategic Bitcoin reserve custody agreement complies with the Foreign Exchange Stabilization Fund audit procedures, strict cybersecurity standards, and cryptographic evidence verification to ensure the dual integrity of the strategic Bitcoin reserves and public confidence in the United States.
Section Five: Conditions for Selling Strategic Bitcoin Reserves
(a) Long-term preservation principle. Strategic Bitcoin reserves should serve as a permanent pillar of U.S. financial strength and commitment to the future digital economy, upholding the same spirit as our defense of Fort Knox gold reserves. Bitcoin stored in strategic Bitcoin reserves should not be seen as short-term financial assets. Its goal is to establish U.S. leadership in global Bitcoin holding, innovation, and management - ensuring U.S. interests, not the interests of foreign competitors, set the standard for global digital asset strategies.
(b) Strict liquidity restrictions. The sale or other forms of liquidation of strategic Bitcoin reserve funds is only allowed in the most extreme and exceptional cases of national economic or security crises. The determination of such crises must be approved by the President of the United States. Without explicit authorization, the Secretary of the Treasury has no authority to sell, mortgage, exchange, or otherwise dispose of any part of the strategic Bitcoin reserve.
© Strict approval process. Before any sale, the Minister of Finance shall submit a detailed written decision, supported by sufficient evidence, demonstrating that the proposed sale directly addresses a specific national economic or security crisis.
(d) Transparent and controllable execution. In rare cases, if the sale is approved, it should be conducted in the most fair and strict manner possible to minimize market impact and maintain public confidence. Private transactions, staggered trades, or other measures should be prioritized to ensure that even in times of crisis, the reputation of the country in financial prudence and accountability is preserved.
Section Six: Reporting and Transparency
(a) Reserve public proofs. The Minister of Finance shall implement a public reserve proof process using cryptographic authentication. These certifications shall be conducted quarterly to ensure transparency of the Bitcoin holdings of the Foreign Exchange Stabilization Fund while protecting sensitive information.
(b) Annual report. As part of the annual report on the operation of the Foreign Exchange Stability Fund (in accordance with the requirements of the Gold Reserve Law), the Minister of Finance shall provide detailed information on the status, performance, and strategic benefits of Bitcoin in the Foreign Exchange Stability Fund. The report should also summarize the acquisition strategy, security measures, and any impact on economic stability (considering national economic or security factors).
Seventh Section: Inter-institutional 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 in the Foreign Exchange Stabilization Fund comply with U.S. national security, economic stability, and cybersecurity standards.
This is to certify that I signed this document on [date] [month] [year], during the founding of the United States in [year], and the declaration of independence in [year].
