US President-elect Donald Trump is reportedly considering an Executive Order to establish a Strategic Bitcoin Reserve (SBR), according to Satoshi Act Fund founder Dennis Porter.
On Dec. 15, Porter shared on social media platform X (formerly Twitter) that Trump plans to use the Treasury’s Exchange Stabilization Fund (ESF) to implement this strategy after his inauguration.
Porter stated:
“The Treasury, through the Exchange Stabilization Fund, has the authority to stabilize the dollar by buying currencies. Trump will use this fund to buy Bitcoin.”
The ESF, typically reserved for stabilizing financial markets during crises, has total assets of more than $200 billion as of October 2024. Historically, the fund has played a key role during events like the 2008 financial meltdown and the COVID-19 pandemic.
Porter emphasized the importance of this move for US financial strategy and the urgency of acting before other nations take the lead. If Trump decides against the executive order, Porter indicated that his organization would 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 by creating a wave of ‘Strategic Bitcoin Reserves.’”
Race to SBR
The concept of a Strategic Bitcoin Reserve has gained significant traction globally. In the U.S., President-elect Trump and his allies have been vocal supporters of the initiative since mid-2024.
Lawmakers, including Senator Cynthia Lummis of Wyoming, have proposed acquiring substantial Bitcoin holdings for national reserves. Lummis’s Bitcoin Act suggests the US could accumulate 200,000 BTC annually over five years.
Several US states have already taken steps toward establishing Bitcoin reserves. Pennsylvania and Texas are leading the charge, with at least ten other states actively drafting similar bills.
Interest in Bitcoin reserves is also on the rise globally. Brazil recently proposed legislation to allocate 5% of its international reserves to Bitcoin. Poland’s presidential candidate, Slawomir Mentzen, has vowed to create a Bitcoin reserve if elected. In Japan, lawmakers have urged the government to consider similar measures.
Market observers said these developments signal a growing acknowledgment of Bitcoin’s role in shaping future financial systems. However, some are also concerned about the potential centralization of Bitcoin’s supply into corporate reserves.
This news is republished from another source. You can check the original article here
