US President Donald Trump has signed an Executive Order creating a Strategic Bitcoin Reserve (SBR)—a first-of-its-kind program to hold BTC as part of the federal government’s assets. According to the Order, the Reserve will be funded by Bitcoin already in government possession through criminal or civil forfeiture, ensuring the new program won’t tap taxpayer money directly.
The market’s initial response, however, has been anything but celebratory. The BTC price fell by more than -7% on the news that the administration won’t immediately make large-scale open-market purchases. Many traders had been betting on the possibility of the US piling into Bitcoin at once—an assumption that the new Order effectively undercuts, at least for now.
Yet one line in the Executive Order has seized market attention: “The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies have no incremental costs on American taxpayers.”
That statement has fueled speculation about what “budget-neutral” really means in practice. Several prominent figures in the Bitcoin space have weighed in on possible ways the federal government could shore up billions of dollars in BTC without increasing its deficits or needing new Congressional funding.
Bitcoin – A ‘Trillion-Dollar’ Strategy?
One of the most influential voices is David Bailey, an insider from the Trump team and a key figure in shaping President Trump’s pro-Bitcoin pivot. Posting on X, Bailey tallied potential funding sources in a terse but eye-catching outline:
“$39B of surplus ESF
$160B from selling SDRs
$800B from gold certificate revaluation
=$1T ‘budget neutral’ Bitcoin buys”
His message hints that the Treasury might combine surplus funds from the Exchange Stabilization Fund (ESF) and possible Special Drawing Rights (SDR) sales with a strategic revaluation of gold certificates as well as gold certificate revaluations – all accounting maneuver that effectively boosts the government’s usable capital.
Analysts at the Bitcoin Policy Institute (BPI), including Co-President David Zell and Executive Director Matthew Pines, also argue that the most immediate option might involve the ESF. The ESF currently holds an estimated $39–$40 billion in surplus, accessible to the Treasury under certain circumstances.
Zell noted via X, “The US could buy $39 billion worth of Bitcoin immediately, using the Exchange Stabilization Fund’s net position. This would be budget-neutral and wouldn’t require Congressional approval.”
Another option, according to Zell, is an Act of Congress: “Revaluing gold, per Senator Lummis BITCOIN Act. If passed, the law would have the USFG acquire 200k per year for 5 years in an entirely budget-neutral manner.”
Matthew Pines, Executive Director of the BPI, added: “There is a legal path for the President to acquire Bitcoin via Executive Order, as BPI drafted last Nov, using the Exchange Stabilization Fund. There is currently ~$40B in surplus USD sitting in the ESF. Of course, legislation is needed to codify any Executive move.”
Meanwhile, BTC commentator Bit Paine (@BitPaine) underscored what he views as a clear sign that the administration has already mapped out its plan behind the scenes: “You don’t authorize ‘the Secretaries of Treasury and Commerce… to develop budget-neutral strategies for acquiring additional Bitcoin,’ unless those strategies have already been debated, agreed upon, and made ready for execution.”
In a more emphatic aside, Bit Paine pointed to Howard Lutnick, Commerce Secretary, who has openly revealed that he owns a sizable BTC stake and leads a firm with large holdings of MicroStrategy (MSTR), concluding:
“The Secretary of Commerce, whom the President of the United States just put in charge of a sovereign wealth fund and authorized to giga-long BTC is on […] recorded […] videotape saying that he owns ‘$100s of millions of BTC – soon to be billions’ – and his company’s single largest holding is MSTR. And you are bearish.”
Although the Executive Order opens one path to budget-neutral Bitcoin buying, analysts such as David Zell believe that congressional action remains essential. Notably, Congressman Nick Begich—a vocal BTC supporter—echoed this sentiment, tweeting: “It’s time for America to become the first BITCOIN superpower. I am working on something ₿ig with Senator Lummis. Stay tuned for next Tuesday.”
Begich’s remark alludes to an upcoming private BPI event on March 11, co-hosted by Senator Lummis, to discuss Bitcoin’s role as a strategic reserve asset.
At press time, BTC traded at $89,785.
Featured image created with DALL.E, chart from TradingView.com
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