A quick look at the full text of the first draft of the US Presidential Executive Order on Strategic Bitcoin Reserves

Written by: Golden Finance

The United States' strategic Bitcoin reserve is very likely to come true.

On December 12, 2024, Trump was interviewed by CNBC after attending the New York Stock Exchange bell ringing and confirmed that the United States should establish a strategic crypto reserve like oil.

In the early morning of December 18, 2024, the first draft of the "Strategic Bitcoin Reserve" presidential executive order drafted by the Bitcoin Policy Institute was circulated in the industry. The full name of this executive order is "Executive Order on Designating 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 only needs Trump to sign it on the first day of his inauguration to take effect.

Golden Finance compiled the full text of the draft executive order drafted by the Bitcoin Policy Institute of the United States, as follows:

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

By virtue of the powers vested in me as President of the United States by the Constitution and the laws of the United States, including Section 5302 of Title 31 of the United States Code, I hereby order the following:

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 is a decentralized and limited store of value, similar to digital gold, whose unique properties can enhance the resilience of the dollar and support U.S. economic interests. This executive order designates Bitcoin as an asset suitable for strategic acquisition within the Treasury's Exchange Stabilization Fund (ESF) and establishes a strategic Bitcoin reserve as a permanent national asset for the benefit of all Americans.

Section II: Policy

It is the policy of the United States to:

1. Establish a Strategic Bitcoin Reserve to promote economic growth in our country and strengthen the United States' long-term financial dominance;

2. Designate Bitcoin as a strategic asset held by the United States Government to 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 Exchange Stabilization Fund;

3. Make the United States a global leader in the digital asset industry by attracting capital, talent, and sound businesses to build and develop.

Section III: Establishment of the Strategic Bitcoin Reserve (SBR) and Designation of Bitcoin as a Strategic Reserve Asset

(a) Establishment of the Strategic Bitcoin Reserve. There is hereby established a Strategic Bitcoin Reserve (SBR), to be managed by the Secretary of the Treasury, to increase the diversity of the United States' reserve assets. To enhance confidence in the reserve, the Strategic Bitcoin Reserve will be subject to regular audits, strict security standards, and comprehensive reporting measures to ensure long-term accountability and security.

(b) Consolidation of Government Holdings of Bitcoin. Within 7 days of the date of this order, any bitcoin under the control of a Federal agency, including the United States Marshals Service, shall not be sold, exchanged, auctioned, or otherwise pledged, and legal title to such bitcoin (including upon a final, nonappealable judgment in a criminal or civil forfeiture action in favor of the Federal Government) shall be transferred by the head of such Federal agency to the Strategic Bitcoin Reserve.

(c) Designation as a Reserve Asset. Bitcoin is hereby designated as a strategic reserve asset suitable for purchase and holding within the Exchange Stabilization Fund. Within 60 days of the date of this order, the Secretary of the Treasury shall promptly implement an acquisition program to acquire and manage bitcoin within the Exchange Stabilization Fund. The goal of the Strategic Bitcoin Reserve is to establish the United States as the undisputed leader in this area.

SECTION 4: ACQUISITION AND CUSTODY AGREEMENT

(a) Acquisition Program. Pursuant to section 5302 of title 31, United States Code, which authorizes the Secretary of the Treasury to “conduct transactions in credit instruments…,” the Secretary of the Treasury is hereby authorized to acquire bitcoin for the Strategic Bitcoin Reserve by purchasing debt obligations from appropriate counterparties, consistent with applicable law and not to exceed the $21 billion limit available for strategic purchases from the Exchange Stabilization Fund. This initial acquisition program shall be completed no later than 365 days after the date of this order.

(b) Custody and Security Protocols. To ensure the safe custody 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 an existing U.S. Government relationship with a reputable and secure custodian service provider to ensure immediate, reliable storage of bitcoin for the Strategic Bitcoin Reserve. The Secretary of the Treasury shall direct that all bitcoin purchased pursuant to the acquisition program be securely transferred to such custodian service provider.

In parallel, the Secretary of the Treasury shall develop and implement—in conjunction with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the National Institute of Standards and Technology (NIST) and other agencies as required by the Secretary of the Treasury’s self-custody agreement (including specialized hardware, trusted software, access controls, geographic distribution, multi-signature controls, and physical security measures)—measures designed to enhance long-term security, reduce reliance on third parties, and maintain full sovereign control of the United States’ Bitcoin Reserve as a “digital Fort Knox.” The Secretary of the Treasury shall ensure that the Strategic Bitcoin Reserve custody agreement is consistent with the Exchange Stabilization Fund’s audit procedures, rigorous cybersecurity standards, and cryptographic evidence verification to safeguard the integrity of the Strategic Bitcoin Reserve and the confidence of the American public.

Section 5: Conditions for the Sale of the Strategic Bitcoin Reserve

(a) Long-term Preservation Principle. The Strategic Bitcoin Reserve shall serve as a permanent pillar of America’s financial strength and commitment to the future digital economy, in the same spirit as we safeguard our gold reserves at Fort Knox. Bitcoins stored in the Strategic Bitcoin Reserve should not be viewed as short-term financial assets. The goal is for the Strategic Bitcoin Reserve to establish the United States as a global leader in Bitcoin holdings, innovation, and stewardship—ensuring that U.S. interests, not those of foreign competitors, set the standard for global digital asset strategy.

(b) Strict liquidity restrictions. Sales or other forms of withdrawal of funds from the Strategic Bitcoin Reserve will be permitted only in the most extreme and exceptional circumstances of national economic or security crisis. Such a crisis determination must be approved by the President of the United States. The Secretary of the Treasury is not authorized to sell, pledge, exchange, or otherwise dispose of any portion of the Strategic Bitcoin Reserve without such express authorization.

(c) Strict approval process. Before making any sale, the Secretary of the Treasury shall submit a detailed written determination, supported by sufficient evidence that the proposed sale directly addresses an exceptional national economic or security crisis.

(d) Transparent and controlled execution. In the rare circumstances in which a sale is authorized, it shall be conducted in the most impartial and strictly controlled manner to minimize market impact and maintain public confidence. Priority should be given to private, staggered transactions or other measures to ensure that the nation’s reputation for financial prudence and responsibility is maintained, even in a crisis.

Section VI: Reporting and Transparency

(a) Public Certification of Reserves. The Secretary of the Treasury shall implement a process for public certification of reserves using cryptographic certification. These certifications shall be conducted on a quarterly basis to ensure transparency of the Exchange Stabilization Fund’s bitcoin holdings while protecting sensitive information.

(b) Annual Reporting. As part of the annual report on the operations of the Exchange Stabilization Fund (as required by the Gold Reserve Act), the Secretary of the Treasury shall provide detailed information on the status, performance, and strategic benefits of bitcoin held in the Exchange Stabilization Fund. The report shall also summarize acquisition strategies, custodial security measures, and any impact on economic stability (taking into account national economic or security considerations).

Section 7: Interagency Coordination

The Secretary of the Treasury shall coordinate with the Federal Reserve Board, the Department of Defense, and other relevant Federal agencies to ensure that the acquisition and management of Bitcoin in the Exchange Stabilization Fund is consistent with United States national security, economic stability, and cybersecurity standards.

WITHSTANDING WHEREOF, I have signed this [year] [month] [day], in the year of independence of the United States [year], in the year of independence of the United States.