Donald Trump reportedly plans to leverage $200 billion US Treasury fund for Bitcoin reserves

US President-elect Donald Trump is reportedly contemplating an Government Order to ascertain a Strategic Bitcoin Reserve (SBR), based on Dennis Porter, founding father of the Satoshi Act Fund.

On December 15, Porter shared on social media platform X (previously Twitter) that Trump plans to make use of the Treasury Division’s Trade Stabilization Fund (ESF) to implement this technique after his inauguration.

Porter declared:

“The Treasury Division, by way of the Trade Stabilization Fund, has the authority to stabilize the greenback by buying currencies. Trump will use this fund to purchase Bitcoin.”

The ESF, which is often reserved for stabilizing monetary markets throughout crises, has a complete capability of greater than $200 billion as of October 2024. Traditionally, the fund has performed a key function throughout occasions such because the 2008 monetary disaster and the COVID-19 pandemic.

Porter emphasised the significance of this transfer to U.S. monetary technique and the urgency of performing earlier than different international locations take the lead. If Trump decides towards the manager order, Porter indicated his group would push for state-level laws to advance the SBR agenda.

He added:

“If he does not, we can be ready to use stress on the state stage by making a wave of ‘Strategic Bitcoin Reserves’.”

Race to SBR

The idea of a strategic Bitcoin reserve has gained vital traction worldwide. Within the US, newly elected President Trump and his allies have been outspoken supporters of the initiative since mid-2024.

Lawmakers, together with Sen. Cynthia Lummis of Wyoming, have proposed buying substantial Bitcoin holdings for nationwide reserves. Lummis’ Bitcoin Act means that the US might accumulate 200,000 BTC yearly over 5 years.

A number of US states have already taken steps to construct Bitcoin reserves. Pennsylvania and Texas are main the cost, with at the least ten different states actively drafting comparable payments.

Curiosity in Bitcoin reserves can also be growing worldwide. Brazil lately proposed laws to allocate 5% of its worldwide reserves to Bitcoin. Polish presidential candidate Slawomir Mentzen has promised to create a Bitcoin reserve if elected. In Japan, lawmakers have urged the federal government to contemplate comparable measures.

Market observers mentioned these developments point out a rising recognition of Bitcoin’s function in shaping future monetary techniques. Nonetheless, some are additionally involved in regards to the potential centralization of Bitcoin provide into company reserves.