A quick look at the full text of the first draft of the Presidential Executive Order on the “U.S. Strategic Bitcoin Reserve”

Written by: Golden Finance

There is a high probability that the United States’ strategic Bitcoin reserve will come true.

On December 12, 2024, Trump confirmed in an interview with CNBC after attending the New York Stock Exchange bell ringing that the United States should establish an encrypted strategic 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" ("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 will only take effect if Trump signs it on his first day in office.

Golden Finance compiled the full text of the first draft of the executive order drafted by the U.S. Bitcoin Policy Institute, as follows:

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

In accordance with the powers vested in me as President of the United States by the Constitution of the United States and the laws of the United States, including Section 5302 of Title 31 of the United States Code, I hereby order as follows:

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 U.S. dollar and support U.S. economic interests. This Executive Order designates Bitcoin as an asset suitable 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

The policy of the United States is as follows:

1. Establish a strategic Bitcoin reserve to promote our country’s economic growth and strengthen the United States’ long-term financial dominance;

2. Designate Bitcoin as a strategic asset held by the U.S. government and ensure the national economic security and competitive advantage of the United States in the 21st century by expanding the diversity of assets held within the Exchange Stabilization Fund;

3. Make the United States the world's leading digital asset industry leader by attracting capital, talent, and sound businesses to build and develop.

Section 3: Establishment of the Strategic Bitcoin Reserve (SBR) and the

designation of Bitcoin as a strategic reserve asset

(a) Establishment of Strategic Bitcoin Reserve. The Strategic Bitcoin Reserve (SBR) is now established, managed by the Secretary of the Treasury, to increase the diversity of U.S. reserve assets. To increase 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) Consolidate government holdings of Bitcoin. No Bitcoin under the control of a federal agency, including the U.S. Marshals Service, may be sold, exchanged, auctioned, or otherwise mortgaged for seven days from the date of this order, and no legal ownership of such Bitcoin, including in criminal or civil Upon a final, non-appealable judgment in a forfeiture action and the federal government prevails), it shall be transferred to the Strategic Bitcoin Reserve by the head of that federal agency.

(c) Designated 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 immediately implement an acquisition plan to acquire and manage Bitcoin within the Exchange Stabilization Fund. The goal of the Strategic Bitcoin Reserve is to establish the United States’ undisputed leadership in this regard.

Section 4: Acquisition and Custody Agreement

(a) Acquisition Plan. Pursuant to section 5302 of title 31, United States Code, which authorizes the Secretary of the Treasury to "transact in credit instruments...," the Secretary of the Treasury is now directly authorized to do so, consistent with applicable law and not to exceed the $21 billion appropriated from the Exchange Stabilization Fund. Bitcoin is included in the Strategic Bitcoin Reserve by purchasing debt obligations from suitable counterparties under limits used for strategic purchases . This initial acquisition plan shall be completed within 365 days of the date of this order.

(b) Custody and Security Agreements. 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 existing U.S. Government relationships with reputable and secure custody service providers to ensure the immediate, reliable storage of Bitcoin in the Strategic Bitcoin Reserve. The Secretary of the Treasury should direct that all Bitcoin purchased under the Acquisition Program be securely transferred to such a custody service provider.

At the same time, the Secretary of the Treasury shall develop and implement—with the National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the National Institute of Standards and Technology (NIST) and other agencies required under the Secretary’s self- custody agreement, including specialized hardware, reliable software, access controls, geo-distribution, multi-signature controls, and physical security measures)—measures designed to enhance long-term security, reduce third-party dependencies, and maintain full sovereign control of the U.S. Bitcoin Reserve as a “Digital Fort Knox.” The Secretary of the Treasury should ensure that the Strategic Bitcoin Reserve custody agreement complies with Exchange Stabilization Fund audit procedures, rigorous cybersecurity standards, and cryptographic evidence verification to ensure the dual integrity of the Strategic Bitcoin Reserve and U.S. public confidence.

Section 5: Conditions for Sale of Strategic Bitcoin Reserves

(a) Long-term preservation principle. The Strategic Bitcoin Reserve should serve as a permanent pillar of America’s financial strength and commitment to the future digital economy, in the same spirit as our defense of the Fort Knox Gold Reserve. Bitcoins stored in the Strategic Bitcoin Reserve should not be considered short-term financial assets. The goal is for the Strategic Bitcoin Reserve to establish the United States as a leader in global Bitcoin ownership, innovation, and stewardship—ensuring U.S. interests, not those of foreign competitors, and setting the standard for global digital asset strategy.

(b) Strict liquidity restrictions. Sales or other forms of withdrawal of funds from strategic Bitcoin reserves will only be allowed in the most extreme and exceptional situations of national economic or security crisis. Such a crisis designation must be approved by the President of the United States. The Secretary of the Treasury does not have the authority to sell, pledge, exchange, or otherwise dispose of any portion of the Strategic Bitcoin Reserve without this express authorization.

(c) Rigorous approval process. Before proceeding with 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 unlikely event that a sale is approved, it should be done in the most impartial and tightly 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 country's reputation for financial prudence and responsibility is maintained even in a crisis.

Section 6: Reporting and Transparency

(a) Public certification of reserves. The Secretary of the Treasury should implement a public reserve certification process that utilizes cryptographic certification. These certifications should be conducted on a quarterly basis to ensure transparency of the Exchange Stabilization Fund’s Bitcoin holdings while protecting sensitive information.

(b) Annual Report. As part of the annual report on the operations of the Exchange Stabilization Fund (as required under the Gold Reserve Act), the Treasury Secretary shall provide detailed information on the status, performance and strategic benefits of Bitcoin within the Exchange Stabilization Fund. The report should also summarize the acquisition strategy, custody security measures and any impact on economic stability (taking into account national economic or security factors).

Section 7: Inter-Agency 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 within the Exchange Stabilization Fund is consistent with U.S. national security, economic stability, and cybersecurity standards.

WITNESS WHEREOF, I do hereby sign [year] [month] [date], in the year [year] of the founding of the United States, and the year [year] of independence.