Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Bitcoin Policy Institute Drafts Executive Order for Trump’s Strategic Bitcoin Reserve

Bitcoin Policy Institute Drafts Executive Order for Trump’s Strategic Bitcoin Reserve

CryptoNewsCryptoNews2024/12/18 04:00
By:Hassan Shittu

Trump proposes a Strategic Bitcoin Reserve to position the U.S. as a leader in digital assets, enhancing economic stability and capital inflows.

Last updated:
December 17, 2024 18:12 EST

The Bitcoin Policy Institute has proposed an executive order to create a Strategic Bitcoin Reserve under the U.S. Treasury’s Exchange Stabilization Fund (ESF) in the Trump administration.

If adopted, this move aims to position the United States as a global leader in digital assets. It highlights Bitcoin’s role as “digital gold” and seeks to drive capital inflows, technological adoption, and financial resilience.

U.S. Proposes Strategic Bitcoin Reserve Under Trump to Strengthen Economy and Safeguard Dollar

The proposal stresses the need for the U.S. to adapt to the growing influence of digital assets in global finance. Bitcoin is a decentralized, finite asset that can strengthen the U.S. economy and safeguard the dollar.

The order aims to diversify the ESF’s holdings and secure long-term economic stability by formally designating Bitcoin as a strategic reserve asset.

JUST IN: Bitcoin Policy Institute drafts Executive Order for a Strategic Bitcoin Reserve for President Trump 🇺🇸 pic.twitter.com/bxJHZKa8Ue

— Bitcoin Magazine (@BitcoinMagazine) December 17, 2024

The executive order establishes a Strategic Bitcoin Reserve (SBR) to manage Bitcoin as a permanent national asset.

The Treasury Secretary would administer it, and strict measures would ensure transparency and accountability. Regular audits, advanced security protocols, and comprehensive reporting would be required to build public confidence.

The order calls for consolidating all Bitcoin currently under federal control. Within seven days, agencies like the U.S. Marshal Service would be required to stop selling, auctioning, or transferring Bitcoin.

Once legal ownership is confirmed, those holdings would move to the Strategic Bitcoin Reserve.

Additionally, the Treasury Secretary would have 60 days to implement an acquisition program to purchase and manage Bitcoin under the ESF.

Trump’s Bitcoin Reserve Plan: Will Seized BTC Kickstart a New Financial Era?

Bitcoin surged to a record high above $107,000 on Monday after President-elect Donald Trump reaffirmed plans to establish a U.S. bitcoin strategic reserve, igniting enthusiasm among crypto supporters.

A strategic reserve is a stockpile of critical resources to stabilize markets during crises. Examples include the U.S. Strategic Petroleum Reserve and China’s reserves of metals and grains.

Analysts are divided on whether Trump could create the reserve through an executive order or if Congress must act. Trump hinted the reserve could start with 200,000 seized bitcoins, currently worth around $21 billion.

Adding more would require government purchases, potentially funded through debt issuance or selling gold reserves.

Senator Cynthia Lummis has proposed legislation for the Treasury to purchase 200,000 BTC annually for five years , funded by Federal Reserve profits and gold holdings.

Supporters argue a Bitcoin reserve could help dominate the global market, reduce deficits, and strengthen the U.S. dollar.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!