Draft Executive Order on Strategic BTC Reserve Finalized
On December 17, the Bitcoin Policy Institute announced the completion of a draft executive order proposing the inclusion of Bitcoin as part of the United States’ strategic reserve assets. The order could take effect immediately upon being signed by President Donald Trump on his first day in office.
On December 17, the Bitcoin Policy Institute announced the completion of a draft executive order proposing the inclusion of Bitcoin as part of the United States’ strategic reserve assets. The order could take effect immediately upon being signed by President Donald Trump on his first day in office.
The proposal emphasizes Bitcoin’s potential benefits within the national reserve framework, arguing that its recognition as a strategic asset could strengthen financial stability and bolster the nation’s economic security.
David Bailey, CEO of Bitcoin Magazine, shared the news on X, stating he was among the first in the crypto community to review the documents.
The draft formally defines Bitcoin as a strategic asset and underscores the need for the U.S. to adapt its financial strategies to maintain global leadership and economic stability. It highlights Bitcoin’s decentralized nature and limited supply, suggesting it could enhance the resilience of the U.S. dollar and support the nation’s economic priorities.
The executive order highlights the potential use of BTC within the Treasury Department’s Exchange Stabilization Fund (ESF). Bitcoin is identified as a viable asset for strategic reserves and a potential long-term national asset designed to benefit all Americans. Diversifying the ESF’s holdings is seen as a critical measure to safeguard national economic activity and sustain a competitive edge in the 21st century.
Additionally, the order outlines a vision for the United States to become a global leader in digital assets. This includes attracting investment, top talent, and reliable companies to establish and grow their operations within the country.
What Actions Does the Executive Order Envision?
- Establishment of a Strategic Bitcoin Reserve (SBR): Within two months of Trump’s inauguration, the SBR will be created. It will be subject to regular audits and stringent security protocols to ensure transparency and reliability.
- Consolidation of Federal Bitcoin Holdings: Within seven days of the order’s signing, all BTC held by federal agencies will be consolidated. To facilitate this process, the sale, exchange, auction, or encumbrance of digital assets under federal control, including those managed by the U.S. Marshals Service, will be prohibited.
- Transfer of Assets to the SBR: Once legal ownership is confirmed, agency heads must transfer all cryptocurrency holdings to the Strategic Bitcoin Reserve.
- BTC Acquisition and Management Program: Within 60 days of the order’s signing, the U.S. Treasury Secretary is tasked with implementing a program for acquiring and managing Bitcoin through the Exchange Stabilization Fund (ESF).
This initiative from the Bitcoin Policy Institute presents a comprehensive strategy for integrating Bitcoin, the world’s first cryptocurrency, into the United States’ traditional financial system.
States Launch Independent Bitcoin Reserve Initiatives
At the same time, Ohio lawmakers have proposed their own plan to establish a state-backed Bitcoin reserve. On Tuesday, Derek Merrin, an Ohio state representative, officially introduced a bill aimed at creating a Bitcoin reserve managed by the state.
In a post on X, Merrin wrote: “As the US dollar undergoes devaluation, Bitcoin provides a vehicle to supplement our state's portfolio and preserve public funds from losing value.”
The proposed legislation, HB 703—titled the “Ohio Bitcoin Reserve Act”—calls for the creation of a separate crypto fund within the state treasury. It also empowers the state treasurer to invest any temporarily available funds in Bitcoin.
The bill states: “A strategic bitcoin reserve fund aligns with the state's commitment to fostering innovation in digital assets and providing Ohioans with enhanced financial security.”
It’s worth noting that lawmakers in other states, such as Texas and Pennsylvania, have also recently floated similar proposals to create state-managed Bitcoin reserves.
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