US President-elect Donald Trump is reportedly considering an Executive Order to establish a Strategic Bitcoin Reserve (SBR), according to Dennis Porter, founder of the Satoshi Act Fund. Porter revealed on social media platform X that Trump plans to utilize the Treasury’s Exchange Stabilization Fund (ESF) to implement this strategy following his inauguration.
The ESF, which typically intervenes in financial markets during crises, boasts assets exceeding $200 billion as of October 2024. Its historical role in stabilizing the economy during events like the 2008 financial crisis and the COVID-19 pandemic underscores its significance.
Porter stressed the importance of this move for US financial strategy and the need to act swiftly to prevent other nations from taking the lead. Should Trump opt against the executive order, Porter mentioned that his organization would advocate for state-level legislation to advance the SBR agenda.
The notion of a Strategic Bitcoin Reserve has gained traction globally. In the US, President-elect Trump and his allies have been vocal proponents of the initiative since mid-2024. Senator Cynthia Lummis of Wyoming has introduced the Bitcoin Act, proposing the acquisition of significant Bitcoin holdings for national reserves, aiming to accumulate 200,000 BTC annually over five years.
Several US states, including Pennsylvania and Texas, are at the forefront of establishing Bitcoin reserves, with other states actively drafting similar bills. Internationally, Brazil has proposed allocating 5% of its international reserves to Bitcoin, while Poland’s presidential candidate has pledged to create a Bitcoin reserve if elected. Japanese lawmakers have also urged their government to consider adopting similar measures.
These developments reflect a growing recognition of Bitcoin’s potential in shaping future financial systems. However, concerns have been raised about the concentration of Bitcoin supply in corporate reserves.
The race to establish Strategic Bitcoin Reserves highlights the evolving landscape of digital asset adoption in mainstream financial institutions. As governments and policymakers navigate this new terrain, the integration of Bitcoin into national reserves could redefine traditional economic paradigms.