Bitcoin Policy Institute Drafts Executive Order for Strategic Bitcoin Reserve

In what could be a monumental shift in U.S. economic strategy, the Bitcoin Policy Institute has drafted an Executive Order aimed at creating a Strategic Bitcoin Reserve under President Trump's administration. This move, if enacted, would not only acknowledge Bitcoin as a legitimate financial asset but also position the U.S. at the forefront of digital currency adoption on a global scale.

The Blueprint for a New Financial Era

The draft Executive Order outlines a comprehensive approach to integrating Bitcoin into the national economic framework through the Exchange Stabilization Fund (ESF). By designating Bitcoin as a strategic reserve asset, the U.S. would significantly diversify its reserve assets, traditionally dominated by gold and foreign currencies. This strategic pivot is geared towards enhancing the resilience of the U.S. dollar in an increasingly digital financial landscape.

The core objective of establishing a Strategic Bitcoin Reserve (SBR) is clear: to fortify America's economic security and competitive edge in the evolving digital economy. The proposal emphasizes the U.S.'s ambition to lead in the realm of digital assets, attracting capital, talent, and fostering innovation. This approach could potentially mark a new era in financial policy, where digital currencies are not just recognized but are integral to national economic strategies.

The draft also proposes a meticulous process for the management and oversight of the SBR. It calls for regular audits, stringent security protocols, and comprehensive reporting measures to ensure that the reserve operates with transparency and accountability. This level of oversight is crucial not only for maintaining public trust but also for the strategic management of this new asset class.

This policy could stimulate a new wave of financial innovation within the U.S., attracting businesses and investors who are keen on leveraging the benefits of digital assets. It positions the U.S. not just as a consumer of technology but as a pioneer in reshaping the financial landscape.

Economic Security and Digital Dominance

The strategic use of Bitcoin in national reserves could also serve as a hedge against inflation and economic downturns, providing a diversified approach to economic stability. As digital currencies gain traction, having a reserve in Bitcoin could safeguard against volatility in traditional markets and provide a new layer of economic security.

The policy draft also suggests a consolidation of government-held Bitcoin, directing federal agencies to ensure that any Bitcoin under their control is managed with the same rigor as other strategic assets. This consolidation aims to prevent the unnecessary disposal or mismanagement of digital assets, further emphasizing the strategic importance of Bitcoin.

The proposal for a Strategic Bitcoin Reserve underlines a forward-looking economic strategy that embraces technological advancements and prepares for a future where digital currencies play a pivotal role. By taking this step, the U.S. could redefine what it means to be a global economic leader in the 21st century, blending traditional economic might with digital innovation.

This draft Executive Order, if signed into law, would not only be a landmark in U.S. economic policy but could also set a precedent for how nations might approach the integration of digital assets into their economic frameworks. It's a bold vision for a future where economic policy is as dynamic and adaptive as the technologies shaping our world.

Full Draft Text of the Executive Order for Strategic Bitcoin Reserve

Executive Order on Designating Bitcoin as a Strategic Reserve Asset within the Exchange Stabilization Fund

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 5302 of title 31, United States Code, it is hereby ordered as follows:

Section 1. Purpose

As global finance increasingly integrates digital assets and new economic instruments, the United States must adapt its financial strategies to maintain stability and leadership in the global economy. Bitcoin is a decentralized and finite store-of-value asset, akin to digital gold, with unique attributes that can bolster the resilience of the U.S. dollar and support American economic interests. This Executive Order designates Bitcoin as a suitable asset for strategic acquisition 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. Policy

It is the policy of the United States to:

1. Establish a Strategic Bitcoin Reserve in order to grow our economy and cement American financial dominance long into the future;
2. Designate Bitcoin as a strategic asset held by the U.S. Government, expanding the diversity of assets held within the ESF to safeguard national economic security and competitive advantage in the 21st Century; and
3. Become the global leader of the digital assets industry by attracting capital, talent, and sound businesses to set up and expand in our great nation.

Section 3. Establishment of SBR and Designation of Bitcoin as a Strategic Reserve Asset

(a) Establishment of the Strategic Bitcoin Reserve. The Strategic Bitcoin Reserve (SBR) is hereby established, to be administered by the Secretary of the Treasury with the goal of enhancing the diversity of U.S. reserve assets. To foster confidence in its mission, the SBR will be subject to regular audits, stringent security standards, and comprehensive reporting measures, ensuring accountability and security over the long term.

(b) Consolidation of Government Bitcoin Holdings. Within 7 days of the date of this order, any Bitcoin under the control of any Federal agency, including the United States Marshal Service, shall not be sold, swapped, auctioned, or otherwise encumbered, and upon acquisition of legal title to such Bitcoin (including after a final, unappealable judgment is entered in a criminal or civil forfeiture action in favor of the Federal agency), be transferred by the head of such Federal agency to the SBR.

(c) Designation as a Reserve Asset. Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the ESF. Within 60 days of the date of this order, the Secretary of the Treasury is hereby directed to implement an acquisition program for Bitcoin to acquire and manage Bitcoin within the ESF. It shall be the goal of the SBR to position the United States as the undisputed world leader in Bitcoin holdings, innovation, and stewardship—ensuring that American interests, rather than those of foreign rivals, set the standard for global digital asset strategy.

Section 4. Acquisition and Custody Protocols

(a) Acquisition Program. Pursuant to 31 U.S.C. § 5302, which authorizes the Secretary of the Treasury to "deal in ... instruments of credit," the Secretary is hereby directed, in a manner consistent with obligations under the law, to allocate no less than $1 billion from the ESF for the strategic procurement of Bitcoin for inclusion in the SBR through the purchase of debt obligations from suitable counterparties with repayment denominated in Bitcoin. The Secretary shall engage established, reputable market participants under protocols that maximize value and mitigate risk. This initial Acquisition Program shall be completed within 365 days of the date of this order.

(b) Custody and Security Protocols. To safeguard the Bitcoin holdings of the SBR at all stages, the Secretary of the Treasury shall implement the following phased custody framework. Within 30 days of the date of this order, the Secretary shall confirm that existing U.S. Government relationships with reputable and secure custodial service providers are sufficient to ensure immediate, trusted storage solutions for Bitcoin within the SBR. The Secretary shall instruct all Bitcoin purchases under the Acquisition Program be securely transferred to such custodial service provider.

In parallel, the Secretary shall develop and implement—in coordination with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the National Institute of Standards and Technology—specialized standards and procedures to ensure that the SBR custody protocols meet the highest standards of security, integrity, and operational resilience. These standards shall include digital Fort Knox custody, multi-signature controls, and physical security measures designed to enhance long-term value, reduce reliance on third parties, and maintain full sovereign control over the United States' Bitcoin reserves as a "digital Fort Knox." The Secretary shall ensure that SBR custody protocols are consistent with ESF audit procedures, rigorous cybersecurity standards, as well as cryptographic proof-of-reserve verifications to guarantee both the integrity of the SBR and the confidence of the American public.

Section 5. Conditions for Sales from the Strategic Bitcoin Reserve

(a) Principle of Long-Term Preservation.
The SBR shall be maintained as a permanent pillar of U.S. financial strength and commitment to the future of the digital economy, in the same enduring spirit with which our Nation safeguards its gold reserves in Fort Knox. Bitcoin held within the SBR is not to be treated as a short-term financial instrument or a contingency fund for routine exigencies, but as a generational asset supporting American prosperity and security for decades to come. It is the policy of the U.S. Government to hold ("HODL") all Bitcoin acquired in the SBR for a period not less than 25 years from the date of this order.

(b) Strict Limitations on Liquidation.
Sales or other forms of divestment from the SBR shall be permitted only under the most dire and exceptional circumstances, clearly surpassing ordinary financial fluctuations or geopolitical uncertainties.

(c) Rigorous Approval Processes.
Before any sale may proceed, the Secretary of the Treasury shall present a detailed written determination, supported by substantial evidence, demonstrating that the proposed liquidation directly addresses an exceptional national economic or security crisis. This determination must be approved by the President of the United States. Without this express authorization, the Secretary shall have no authority to sell, encumber, swap, or otherwise dispose of any portion of the SBR.

(d) Transparent and Controlled Execution.
In the rare event that a sale is approved, it shall be conducted through the most judicious and tightly controlled methods available, minimizing market impact and preserving public confidence. Private, staggered transactions or other measured approaches shall be preferred, ensuring that even in crisis, the Nation's reputation for financial prudence and responsibility remains intact.

Section 6. Reporting and Transparency

(a) Public Proof of Reserve.
The Secretary of the Treasury shall implement a public proof-of-reserve process using cryptographic attestations. These attestations shall be provided quarterly to ensure transparency regarding the ESF's Bitcoin holdings, while protecting sensitive security information.

(b) Annual Reporting.
As part of the annual report on the operations of the ESF as required by the Gold Reserve Act, the Secretary of the Treasury shall provide information detailing the status, performance, and strategic benefits of Bitcoin within the ESF. This report shall also summarize the acquisition strategy, custodial security measures, and any impacts on economic stability, subject to considerations of national or economic security.

Section 7. Interagency Coordination

The Secretary of the Treasury shall 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 align with U.S. national security, economic stability, and cybersecurity standards.

IN WITNESS WHEREOF, I have hereunto set my hand this [day] of [month], in the year of our Lord two thousand and twenty-five, and of the Independence of the United States of America the two hundred and forty-ninth.