ESTABLISHMENT OF THE STRATEGIC BITCOIN RESERVE AND UNITED STATES DIGITAL ASSET STOCKPILE
Original author: White House
Original compilation: ChatGPT

Editor’s note:The executive order announced the establishment of a strategic Bitcoin reserve and a U.S. digital asset reserve to strengthen U.S. management of Bitcoin and other digital assets. The Ministry of Finance is responsible for custody and management of Bitcoin and other digital assets held by the government and cannot be sold at will unless specific legal requirements are met. Institutions are required to report the government digital assets they hold within a specified time and assist in transferring them to newly established reserves. The government will formulate a Bitcoin acquisition strategy without additional financial burdens, while ensuring legal compliance and optimizing digital asset management to safeguard the country’s financial strategic interests.

The following is the original content (the original content has been compiled for ease of reading and understanding):

By the presidential powers vested in me by the Constitution and laws of the United States, I hereby order:

Article 1 Background

Bitcoin is the earliest cryptocurrency. The Bitcoin protocol permanently limits the total supply of Bitcoin (BTC) to 21 million, and has never been breached by hackers. Due to its scarcity and security, Bitcoin is often referred to as “digital gold.” Since the supply of BTC is fixed, countries that are the first to establish strategic bitcoin reserves will gain a strategic advantage. Currently, the U.S. government holds a large amount of BTC, but has not yet formulated policies to maximize the strategic value of BTC in the global financial system. Just as it is in the national interest to properly manage national ownership and control of other resources, we must leverage rather than limit the potential of digital assets to promote national prosperity.

Article 2 Policy

U.S. policy is to establish a strategic Bitcoin reserve. At the same time, the United States will also establish a U.S. digital asset reserve as a safe account for the orderly and strategic management of other digital assets held by the United States.

Article 3 Establishment and management of strategic bitcoin reserves and U.S. digital asset reserves.

(a)The Secretary of Finance should establish an office responsible for managing and controlling an escrow account called the Strategic Bitcoin Reserve, which is derived from funds held by the Department of Finance that are ultimately confiscated through criminal or civil asset forfeiture procedures, or from any administrative department or agency (hereinafter referred to as the “agency”) and are not bitcoins that satisfy the requirements set out in 31 U.S. Code section 9705 or are released pursuant to subsection (d) of this section (hereinafter referred to as the “government BTC”).

Within 30 days from the date of this order, agencies shall review their authorizations to determine whether they can transfer their government BTC holdings to strategic Bitcoin reserves and submit a report on the results of the review to the Secretary of Finance. Government BTC deposited in strategic Bitcoin reserves cannot be sold, but should be used as a reserve asset in the United States to achieve government goals in accordance with applicable laws.

(b)The Secretary of the Treasury shall establish an office to manage and control a custodian account known as the “U.S. Digital Asset Reserve,” which is derived from all digital assets held by the Treasury, other than BTC, that are ultimately confiscated through criminal or civil asset forfeiture proceedings and are not assets that meet a need under 31 U.S.C. section 9705 or are released pursuant to subsection (d) of this section (hereinafter referred to as “Reserve Assets”).

Within 30 days from the date of this order, agencies should review their authorizations to determine whether reserve assets they hold can be transferred to the U.S. digital asset reserve and submit a report on the results of the review to the Treasury Secretary. The Treasury Secretary should develop a strategy for responsible management of U.S. digital asset reserves in accordance with applicable law.

(c)Treasury and Commerce secretaries should develop strategies to obtain additional government BTC, provided that these strategies remain budget neutral and do not impose additional costs on U.S. taxpayers. However, unless further administrative or legislative action is taken, the U.S. government is not allowed to acquire reserve assets other than those derived from criminal or civil asset forfeiture procedures or the payment of civil fines.

(d)”Government digital assets” refer to all government BTC and all reserve assets. Unless the Secretary of the Treasury manages the U.S. digital asset reserve in accordance with paragraph (b) of this section or disposes of it in accordance with an order of a court of jurisdiction, or the Attorney General or the head of a relevant agency determines that government digital assets (or proceeds from their sale) can and should:

(i)Return to identifiable and verifiable victims of crime;

(ii)Used for law enforcement actions;

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

(iv)Used to satisfy the requirements of 31 U.S. Code § 9705, 28 § 524(c), 18 § 981, or 21 § 881, otherwise agency heads are not allowed to sell or otherwise dispose of any government digital assets.

(e)Within 60 days from the date of this order, the Secretary of the Treasury shall submit an evaluation report analyzing the legal and investment considerations for establishing and managing strategic Bitcoin reserves and U.S. digital asset reserves, including in which accounts these reserves should be held, and whether legislation is needed to implement relevant aspects of this order or ensure the proper management and operation of these accounts.

Article 4 Account Accounting

Within 30 days from the date of this order, each agency head shall provide the Secretary of the Treasury and the President’s Digital Asset Markets Working Group with complete accounting information for all government digital assets held by the agency, including information on the escrow accounts in which government digital assets are currently held, to facilitate their transfer to the strategic Bitcoin reserve or the U.S. digital asset reserve. If an agency does not hold any government digital assets, it shall confirm this with the Secretary of the Treasury and the President’s Digital Asset Markets Working Group within 30 days of the issuance of this order.

Article 5 General Provisions

(a)This order shall not be interpreted as weakening or otherwise affecting:

(i)The powers conferred by law on any administrative department, agency or person responsible for it; or

(ii)The functions of the Director of the Office of Administrative Management and Budget in connection with budget, administrative or legislative proposals.

(b)The implementation of this order shall comply with applicable laws and subject to funding.

(c)This order is not intended to and does not constitute any right or interest, whether substantive or procedural, that may be claimed or enforced by any party at law or in equity against the United States, its departments, agencies, entities, officials, employees, agents, or any other person.

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