Emily Walker
Recent findings from a public document indicate that the Bitcoin Policy Institute, an American research and advocacy organization, has put together a draft for an executive order aimed at classifying Bitcoin as a strategic reserve asset. This order is intended to become effective immediately once President-elect Donald Trump signs it on his first day in office.
Proposal for Bitcoin Acquisition via Treasury’s ESF
The draft suggests that as digital assets become more integrated into global finance, the United States must evolve its financial tactics to ensure ongoing stability and leadership in the global economy.
This document describes Bitcoin as a decentralized and limited store of value, likening it to digital gold, which could strengthen the dollar and further U.S. economic interests.
If approved, this executive order would enable Bitcoin to be acquired by the Treasury Department’s Exchange Stabilization Fund (ESF), setting up a Strategic Bitcoin Reserve as a permanent national resource benefiting all Americans.
The draft stresses the significance of establishing a Bitcoin reserve to enhance the U.S. economy and secure financial supremacy in the future.
By recognizing Bitcoin as a strategic government asset, the initiative aims to diversify ESF holdings, thereby reinforcing economic security and maintaining a competitive edge in the modern era.
This move also aspires to position the U.S. as a leading player in the digital assets sector, encouraging investment and talent to flourish domestically.
To build trust in this plan, the draft states that the Strategic Bitcoin Reserve would be overseen by the Secretary of the Treasury, incorporating regular audits and security measures.
Within a week of the order’s enactment, any BTC held by federal agencies, including the U.S. Marshals Service, would be barred from sale or encumbrance and instead routed to the strategic reserve after legal title acquisition.
Additionally, the draft directs the Secretary of the Treasury to create a Bitcoin acquisition program within 60 days of signing the order, streamlining the management and purchase of Bitcoin through the ESF.
Trump’s Expected First-Day Executive Action
While this document is a preliminary draft and there has been no public commentary from Trump or his incoming administration, there is rising interest in these potential actions.
Notably, Jack Mallers, the founder and CEO of Strike, recently hinted that Trump is contemplating a first-day executive order to create a Strategic Bitcoin Reserve. During an interview, Mallers stated, “I also know that Trump is looking at a day one executive order.”
His comments have sparked discussions about the possible effects of such an order, especially related to the Dollar Stabilization Act, which could give the president significant authority to safeguard the dollar.
Trump’s recent remarks have increased speculation about establishing a Bitcoin reserve. Speaking at the New York Stock Exchange, he said, “We’re gonna do something great with crypto,” and when asked about the idea of the U.S. creating a reserve similar to its oil reserves, he affirmed, “Yes, I think so.”
As of the latest update, BTC is trading at around $104,000, showing a decline of 2.5% over the last 24 hours.
Featured image from DALL-E, chart sourced from TradingView.com