Satoshi Action Fund founder releases draft of potential executive order to establish US strategic Bitcoin reserve

Dennis Porter, founder of the Satoshi Action Fund, has published a draft executive order drafted for President-elect Trump to establish a strategic Bitcoin reserve within the Exchange Stabilization Fund (ESF). The order allows for an initial allocation of up to 2% of the total portfolio value of the ESF during an 18-month pilot period. In addition, it will use BTC held in custody by the US government as the basis for the reserve. The draft lays out a roadmap for the inclusion of Bitcoin in the ESF, a fund traditionally used to stabilize the dollar and respond to macroeconomic shocks, and 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. One of its main provisions is that the US Treasury will be authorized to acquire, hold, and manage Bitcoin as part of the ESF portfolio. In addition, Bitcoin will be treated as an asset similar to foreign exchange reserves such as gold or foreign currencies. The draft also proposes that the Treasury Department set up a working group to develop a custody system to ensure the safe management of Bitcoin assets. This includes evaluating solutions to provide the Treasury with direct access to reserves and leveraging existing custody infrastructure, such as the system currently used by the US Marshals Service (USMS).