Dennis Porter, founder of the Satoshi Action Fund, has unveiled a draft of an executive order crafted for President-elect Donald Trump to establish a Strategic Bitcoin (BTC) Reserve within the Exchange Stabilization Fund (ESF).
The order allows for an initial allocation of up to 2% of the ESF’s total portfolio value over an 18-month pilot period. Furthermore, it would use BTC in the US government custody as the foundation for the Reserve.
The draft executive order sets out a roadmap for incorporating Bitcoin into the ESF, a fund traditionally used to stabilize the US dollar and respond to macroeconomic shocks. It also outlines a framework for integrating Bitcoin as a foreign-currency-like reserve asset while ending the auction of confiscated Bitcoin held by US authorities.
Draft suggestions
Among its primary provisions is the US Treasury would be authorized to acquire, hold, and manage Bitcoin as part of the ESF portfolio. Additionally, Bitcoin would be treated similarly to foreign reserves like gold or foreign currencies.
Moreover, the draft suggests that the Treasury establish a working group to develop custody systems to ensure the secure management of Bitcoin holdings. This includes evaluating solutions that provide the Treasury with direct access to reserves and leveraging existing custody infrastructure, such as systems currently employed by the US Marshals Service (USMS).
The proposal would discontinue the auction of forfeited Bitcoin by the USMS. Instead, approximately 200,000 BTC currently in US custody — valued at $20.6 billion at $103,000 per Bitcoin — would serve as the initial foundation of the Strategic Bitcoin Reserve.
The draft also includes robust oversight mechanisms to balance innovation with accountability. The Treasury would issue semiannual reports detailing Bitcoin transactions, holdings, and risk management strategies to Congress and the President.
Additionally, the Treasury Inspector General and the Government Accountability Office (GAO) would conduct regular audits, with annual public summaries to ensure transparency.
Jumpstarting legislation
While the ESF provides an initial vehicle for Bitcoin reserves, the draft acknowledges that it may not be a permanent solution.
Within 24 months, the Treasury would be required to deliver a comprehensive report to Congress outlining the limitations and benefits of using the ESF as a Bitcoin custodian, alternative frameworks for reserve management, and legislative recommendations to enshrine the Strategic Bitcoin Reserve into US federal law.
The proposal emphasizes that creating a Bitcoin reserve would not interfere with the Federal Reserve’s independence in setting monetary policy. This provision addresses concerns that Bitcoin integration could complicate traditional monetary frameworks or undermine confidence in the US dollar.
On the contrary, by leveraging Bitcoin’s position as a non-sovereign global asset, the proposal aims to hedge against macroeconomic risks, stabilize the dollar, and position the US as a leader in financial innovation.
If the draft is enacted, it would mark the largest government-led embrace of Bitcoin to date, with profound implications for the digital asset industry, US economic policy, and global reserve practices.
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