Trump's Bitcoin reserve strategy accelerates

Source: Carbon Chain Value

According to Dennis Porter, founder of Satoshi Act Fund, US President-elect Donald Trump is considering establishing a strategic Bitcoin reserve (SBR) through an executive order.

On December 15, Porter shared on social media platform X that Trump plans to use the Treasury's Exchange Stabilization Fund (ESF) to implement this strategy after taking office.

Porter said, "Through the Exchange Stabilization Fund, the Treasury has the authority to stabilize the dollar by purchasing currency. Trump will use this fund to buy Bitcoin."

The ESF is often used to stabilize financial markets during crises, and as of October 2024, its total assets exceeded $200 billion. Historically, the fund has played a key role in events such as the 2008 financial crisis and the COVID-19 pandemic.

Porter emphasized the importance of this move to the US financial strategy and the urgency of taking action before other countries get ahead. If Trump decides against the executive order, Porter said his organization will push for state-level legislation to advance the SBR agenda.

He added, "If he doesn't, we will be ready to apply pressure at the state level to set off a strategic Bitcoin reserve wave."

The Race for SBR

The concept of a Bitcoin strategic reserve has gained significant traction around the world. In the United States, President-elect Trump and his allies have been active supporters of the initiative since the 2024 mid-terms.

Legislators including Wyoming Senator Cynthia Lummis have proposed acquiring large amounts of Bitcoin as a national reserve. Lummis' Bitcoin bill suggests that the United States could accumulate 200,000 BTC per year over five years.

Several U.S. states have already taken steps to establish Bitcoin reserves. Pennsylvania and Texas are leading the way, and at least ten other states are actively drafting similar bills.

Global interest in Bitcoin reserves is also increasing. Brazil recently proposed legislation to allocate 5% of its international reserves to Bitcoin. Polish presidential candidate Slawomir Mentzen has vowed to build a Bitcoin reserve if elected. In Japan, lawmakers urged the government to consider similar measures.

Market observers say these developments show a growing recognition of Bitcoin's role in shaping the future financial system. However, some are also concerned about the potential concentration of Bitcoin supply in corporate reserves.