Trump's BTC reserve strategy is accelerating

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 executive order.

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

Porter said, 'The Ministry of Finance has the right to stabilize the US dollar by purchasing currency through the foreign exchange stabilization fund. Trump will use this fund to buy Bitcoin.'

ESF is usually used to stabilize financial markets during crises. As of October 2024, its total assets exceed 200 billion US dollars. Historically, the fund has played a critical 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 to take action before other countries take the lead. If Trump decides to oppose the executive order, Porter said his organization would push for state-level legislation to advance the SBR agenda.

He added, "If he doesn't do this, we will be prepared to exert pressure at the state level and set off a strategic wave of Bitcoin reserves."

SBR Competition

The concept of Bitcoin Strategic Reserve has gained significant attention around the world. In the United States, President-elect Trump and his allies have been active supporters of the initiative since mid-2024.

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

Several states in the United States have taken measures to establish Bitcoin reserves. Pennsylvania and Texas are taking the lead, with at least ten other states actively drafting similar bills.

There is also increasing global interest in Bitcoin reserves. Brazil recently proposed legislation to allocate 5% of its international reserves to Bitcoin. Slawomir Mentzen, a candidate for the Polish presidency, has pledged to establish a Bitcoin reserve if elected. In Japan, lawmakers are urging the government to consider similar measures.

Market observers say these developments indicate that people are increasingly recognizing the role of Bitcoin in shaping the future financial system. However, some people are also concerned that Bitcoin supply may be concentrated in corporate reserves.