Bitcoin Policy Institute Develops Executive Order Draft For Trump’s Strategic Reserve

As a seasoned researcher with a keen eye for financial trends and a penchant for uncovering hidden gems, I find myself both intrigued and skeptical by this proposed executive order to designate Bitcoin as a strategic reserve asset. Having closely followed the cryptocurrency market since its inception, I’ve witnessed its dramatic ups and downs, and while it’s certainly shown potential, it remains a highly volatile asset.

A recently discovered public report shows that the Bitcoin Policy Institute, a U.S.-based research and lobbying group, has prepared an executive order intended to classify Bitcoin as a strategic reserve asset. This proposed order is meant to become effective right away following President-elect Donald Trump’s signature on his inauguration day.

New Draft Calls for Bitcoin Acquisition Through Treasury’s ESF

As the world’s financial systems become more intertwined with digital assets, it is crucial for the U.S. to adjust its financial tactics to preserve its economic strength and dominance on a global scale.

The document characterizes Bitcoin as a decentralized, finite store-of-value asset, comparable to digital gold, which could enhance the resilience of the US dollar and support American economic interests. 

Implementing this executive order could lead to Bitcoin being recognized as an eligible asset for procurement in the Treasury Department’s Exchange Stabilization Fund (ESF). This would effectively create a Long-Term Bitcoin Reservation, serving as a perpetual national asset intended to bring advantage to every American citizen.

The proposal underscores the significance of establishing a Bitcoin holding as a means to strengthen the U.S. economy and maintain American financial superiority in the future.

The plan suggests labeling Bitcoin as a key investment for the government, with the goal of expanding the variety of assets in the Economic Stability Fund. This move is intended to enhance our country’s financial security, protect it from potential economic threats, and maintain a competitive edge in today’s digital age.

Additionally, it aims to establish the U.S. as a dominant force in the digital asset sector, drawing investment, expertise, and robust enterprises to flourish on its soil.

To boost trust in this project, the plan indicates that the Strategic Bitcoin Reserve will be managed by the Secretary of the Treasury, ensuring regular audits, stringent security protocols, and comprehensive reporting procedures are in place.

In just seven days after the agreement is finalized, no Bitcoin under the possession of federal bodies like the U.S. Marshals Service can be liquidated or pledged. Instead, once the necessary legal ownership is established, these Bitcoins will be moved to the strategic reserve for safekeeping.

Furthermore, the directive empowers the Treasury Secretary to initiate a Bitcoin purchasing plan within two months after the bill’s enactment. This action will streamline the handling and acquisition of Bitcoin through the Emergency Stabilization Fund.

Trump’s Potential Day-One Executive Order 

Although this document is currently just a draft and neither Trump nor his future administration team have spoken about it yet, there’s been a growing curiosity about these proposed actions in the last few days.

Significantly, Jack Mallers, the founder and CEO of Strike, has hinted that Donald Trump might issue an executive order on his first day in office to create a Strategic Bitcoin Reserve. In a conversation, Mallers mentioned, “I am also aware that Trump is considering a day one executive order.

Discourse around the possible outcomes of this decree was ignited by his comments, especially considering the Dollar Stabilization Act, a piece of legislation that might allow the president expansive powers to safeguard the national currency.

Trump’s latest comments have added more curiosity about the potential creation of a Bitcoin savings account. During his address at the New York Stock Exchange, he expressed, “We are going to do something remarkable with cryptocurrencies.” When questioned about the U.S. establishing a similar reserve like its oil reserves, he answered affirmatively, “I believe so.

Currently, Bitcoin is holding steady around the $104,000 mark, representing a decrease of 2.5% over the past 24 hours.

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2024-12-18 11:42