Key Takeaways
- Trump may use the $200B Exchange Stabilization Fund for Bitcoin reserves.
- The Strategic Bitcoin Reserve concept has gained traction globally.
- US lawmakers and states are advancing Bitcoin reserve initiatives.
President-elect Donald Trump is reportedly considering an Executive Order to create a Strategic Bitcoin Reserve (SBR) by leveraging the US Treasury’s $200 billion Exchange Stabilization Fund (ESF).
According to Dennis Porter, founder of the Satoshi Act Fund, the plan would position the US as a leader in Bitcoin reserves.
Implementation details
On December 15, Porter revealed on social media platform X that Trump plans to implement this strategy post-inauguration, using the ESF, historically used to stabilize markets during crises such as the 2008 financial meltdown and the COVID-19 pandemic.
Porter stated:
The Treasury… has the authority to stabilize the dollar by buying currencies. Trump will use this fund to buy Bitcoin.
US state initiatives
The SBR concept has gained traction globally, with several US states, including Pennsylvania and Texas, advancing legislation to create state-level Bitcoin reserves.
Senator Cynthia Lummis’s Bitcoin Act proposes accumulating 200,000 BTC annually over five years as part of the national reserve strategy.
Global adoption
Globally, nations like Brazil, Poland, and Japan are also exploring Bitcoin reserves.
Brazil has proposed allocating 5% of its international reserves to Bitcoin, while Poland’s presidential candidate, Slawomir Mentzen, has committed to creating a reserve if elected.
Market impact
Observers view these moves as recognition of Bitcoin’s role in reshaping financial systems.
However, concerns remain about centralizing Bitcoin’s supply in national or corporate reserves.
