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The Bitcoin Policy Institute has suggested an executive order to establish a Strategic Bitcoin Reserve within the U.S. Treasury’s Exchange Stabilization Fund (ESF) during the Trump administration.
If implemented, this initiative aims to position the United States as a frontrunner in the realm of digital assets. It underscores Bitcoin’s status as “digital gold” and intends to stimulate capital inflows, technological integration, and financial stability.
U.S. Proposes Strategic Bitcoin Reserve Under Trump to Fortify Economy and Protect Dollar
The proposal emphasizes the necessity for the U.S. to adjust to the increasing impact of digital assets in international finance. Bitcoin is a decentralized, limited asset that has the potential to enhance the U.S. economy and protect the dollar.
The order seeks to diversify the ESF’s assets and ensure long-term economic stability by officially recognizing Bitcoin as a strategic reserve asset.
JUST IN: Bitcoin Policy Institute drafts Executive Order for a Strategic Bitcoin Reserve for President Trump
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— Bitcoin Magazine (@BitcoinMagazine) December 17, 2024
The executive order establishes a Strategic Bitcoin Reserve (SBR) to treat Bitcoin as a permanent national asset.
The Treasury Secretary would oversee it, and stringent measures would be put in place to guarantee transparency and accountability. Regular audits, enhanced security measures, and thorough reporting would be mandated to foster public trust.
The order calls for the consolidation of all Bitcoin currently under federal jurisdiction. Within a week, agencies such as the U.S. Marshal Service would be instructed to cease selling, auctioning, or transferring Bitcoin.
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Once legal ownership is verified, those assets would be transferred to the Strategic Bitcoin Reserve.
Furthermore, the Treasury Secretary would have 60 days to initiate a program for acquiring and managing Bitcoin under the ESF.
Trump’s Bitcoin Reserve Initiative: Will Seized BTC Initiate a New Financial Era?
Bitcoin reached an all-time high exceeding $107,000 on Monday after President-elect Donald Trump reiterated intentions to create a U.S. bitcoin strategic reserve, sparking excitement among cryptocurrency advocates.
A strategic reserve is a collection of essential resources aimed at stabilizing markets during emergencies. Notable examples include the U.S. Strategic Petroleum Reserve and China’s stockpiles of metals and grains.
Experts are split on whether Trump could establish the reserve via an executive order or if Congressional action is necessary. Trump suggested that the reserve could commence with 200,000 seized bitcoins, currently valued at approximately $21 billion.
Increasing this amount would necessitate government acquisitions, potentially financed through debt issuance or the sale of gold reserves.
Senator Cynthia Lummis has introduced legislation for the Treasury to acquire 200,000 BTC annually for five years, funded by profits from the Federal Reserve and gold assets.
Proponents contend that a Bitcoin reserve could enhance dominance in the global market, decrease deficits, and bolster the U.S. dollar.
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