Quick Overview of the Full Text of the U.S. Bitcoin Strategic Reserve Executive Order

Source: The White House

Translation: Jinse Finance

By the authority vested in me as President by the Constitution and laws of the United States, I hereby order:

Section 1 Background

Bitcoin is the original cryptocurrency. The Bitcoin protocol permanently caps the total supply of BTC at 21 million, and it has never been hacked. Due to its scarcity and security, Bitcoin is often referred to as "digital gold." Because BTC has a fixed supply, there is strategic advantage in being among the first nations to establish a strategic bitcoin reserve. The U.S. government currently holds a significant amount of BTC, but has not yet implemented policies to maximize BTC’s strategic position as a unique store of value within the global financial system. Just as our nation must thoughtfully manage ownership and control over any other resource, we must harness—rather than limit—the power of digital assets to achieve national prosperity.

Section 2 Policy

It is the policy of the United States to establish a Strategic Bitcoin Reserve. It is also the policy of the United States to establish a United States Digital Asset Stockpile as a secure account for the orderly and strategic management of the government's holdings of other digital assets.

Section 3 Creation and Management of the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile

(a) The Secretary of the Treasury shall establish an office to manage and control custodial accounts collectively known as the “Strategic Bitcoin Reserve,” capitalized with all BTC held by the Department of the Treasury that were ultimately seized as part of criminal or civil asset forfeiture proceedings, or forfeited to satisfy any civil penalty imposed by any executive department or agency (agency), and that are not required to be disbursed under 31 USC 9705 or released pursuant to subsection (d) of this section (government BTC). Within 30 days of the date of this order, agencies shall review their authority to transfer any government Bitcoin they hold into the Strategic Bitcoin Reserve and submit to the Secretary of the Treasury a report reflecting the results of such review. Government Bitcoin deposited into the Strategic Bitcoin Reserve shall not be sold and shall be retained as a reserve asset of the United States for use in achieving governmental objectives consistent with applicable law.

(b) The Secretary of the Treasury shall establish an office to manage and control custodial accounts collectively known as the “United States Digital Asset Stockpile,” capitalized with all digital assets (excluding BTC) held by the Department of the Treasury that were ultimately seized as part of criminal or civil asset forfeiture proceedings and that are not required to be disbursed under 31 USC 9705 or released pursuant to this section (stockpile assets). Within 30 days of the date of this order, agencies shall review their authority to transfer any stockpile assets they hold into the United States Digital Asset Stockpile and submit to the Secretary of the Treasury a report reflecting the results of such review. The Secretary of the Treasury shall determine strategies for the responsible management of the United States Digital Asset Stockpile consistent with applicable law.

(c) The Secretary of the Treasury and the Secretary of Commerce shall develop strategies to acquire additional government BTC, provided that such strategies have no budgetary impact and impose no incremental cost on U.S. taxpayers. However, the United States shall not acquire additional digital assets for the United States Digital Asset Stockpile unless related to criminal or civil asset forfeiture proceedings or to satisfy any civil penalty imposed by an agency without further executive or legislative action.

(d) “Government Digital Assets” refers to all government BTC and all stockpile assets. Heads of agencies may not sell or otherwise dispose of any Government Digital Assets except where the Secretary of the Treasury exercises lawful authority to responsibly manage the United States Digital Asset Stockpile under subsection (b) of this section, or where required by law, pursuant to an order from a court of competent jurisdiction, or where the Attorney General or head of another relevant agency determines that Government Digital Assets (or proceeds from their sale or disposition) may and should be:

(i) returned to identifiable and verifiable crime victims;

(ii) used for law enforcement operations;

(iii) equitably shared with state and local law enforcement partners; or

(iv) disbursed to meet requirements under 31 USC 9705, 28 USC 524(c), 18 USC 981, or 21 USC 881.

(e) Within 60 days of the date of this order, the Secretary of the Treasury shall assess legal and investment considerations relating to the establishment and management of the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile, including the type of accounts in which these reserves should be established, and the need for legislation to implement any aspect of this order or to provide appropriate management and administration of such accounts.

Section 4 Accounting

Within 30 days of the date of this order, heads of agencies shall provide the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets with a complete accounting of all Government Digital Assets held by the agency, including any information regarding custodial accounts currently holding such Government Digital Assets necessary to facilitate the transfer of Government Digital Assets into the Strategic Bitcoin Reserve or the United States Digital Asset Stockpile. If an agency does not hold Government Digital Assets, the agency shall confirm this fact to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets within 30 days of the date of this order.

Section 5 General Provisions

(a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is intended only to improve the internal management of the Federal Government and is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.