The post Can Trump Order A Strategic Bitcoin Reserve? Exploring The Law appeared on BitcoinEthereumNews.com.

At the Bitcoin 2024 conference in Nashville, Donald Trump unveiled his proposal to establish a Strategic Bitcoin Reserve (SBR) for the United States upon his return to office. The plan has swiftly captured widespread attention, particularly in the wake of Trump’s US electoral victories securing majorities in both the House of Representatives and the Senate. “Establishing a Strategic Bitcoin Reserve will position the United States at the forefront of the digital economy, ensuring our financial sovereignty and economic resilience,” Trump declared during his keynote at the conference. However, it is still unclear if this is permitted by law. Can Trump Order A Strategic Bitcoin Reserve? A new legal analysis conducted by the Bitcoin Policy Institute, authored by attorney and startup advisor Zack Shapiro, examines the feasibility of Trump’s proposal within the existing legal framework. Shapiro explores whether the establishment of an SBR is permissible under the authority of the US Department of the Treasury, particularly through the utilization of the Exchange Stabilization Fund (ESF). “The Exchange Stabilization Fund (ESF) is a potent yet underutilized financial instrument that could theoretically be leveraged to acquire Bitcoin as a strategic asset,” Shapiro explains. “The ESF’s mandate, codified in 31 USC. § 5302, grants the Secretary of the Treasury broad discretion to manage assets that stabilize the value of the US dollar.” The ESF, established in 1934 under the Gold Reserve Act during the Great Depression, was initially funded with $2 billion from the revaluation of US gold reserves. Its primary purpose was to stabilize the US dollar and manage international monetary concerns, providing the Treasury Secretary with the flexibility to intervene in foreign exchange markets without direct congressional approval. Shapiro notes that while the ESF was originally focused on traditional assets like gold and foreign currencies, the statutory language does not explicitly limit…

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Filed under: News - @ November 16, 2024 2:16 am