Trump Administration and Ohio Advance Bitcoin Reserve Initiatives

TLDR

• President-elect Trump met with Crypto.com CEO Kris Marszalek to discuss a proposed U.S. Strategic Bitcoin Reserve and crypto-related appointments
• Bitcoin Policy Institute drafted an executive order to classify Bitcoin as a strategic reserve asset within the Treasury’s Exchange Stabilization Fund
• Trump has enlisted crypto proponents for key positions, including Howard Lutnick as commerce secretary and Paul Atkins to lead the SEC
• Bitcoin reached a new all-time high of $108,268.45 on December 17, 2024
• Ohio House Republican Leader Derek Merrin introduced Bill 703 to create a state-level Bitcoin Reserve

President-elect Donald Trump met with Crypto.com CEO Kris Marszalek at Mar-a-Lago on December 16, 2024, to discuss plans for a U.S. Strategic Bitcoin Reserve and potential crypto-related appointments within financial departments and Congress.

The meeting comes as Bitcoin reached a new all-time high of $108,268.45 on December 17, 2024. This price surge followed the public announcement of Trump’s meeting with Marszalek, showing the market’s positive response to potential government adoption of Bitcoin.

Following the meeting, Bitcoin Magazine published a draft executive order created by the Bitcoin Policy Institute. The order outlines a framework for establishing a Strategic Bitcoin Reserve within the Treasury’s Exchange Stabilization Fund, aiming to strengthen U.S. economic security.

The proposed executive order includes specific requirements for implementation. All Bitcoin currently held by the government, including assets from forfeiture cases, would need to be consolidated under the Strategic Bitcoin Reserve within seven days of the order taking effect.

Under the draft order, the Treasury Department would have 60 days to create a program for acquiring and managing Bitcoin holdings. The order emphasizes the importance of strict auditing and security standards for the reserve.

Trump’s engagement with crypto industry leaders extends beyond the meeting with Marszalek. In November, he held a phone conversation with Coinbase CEO Brian Armstrong, as reported by Fortune, showing his continued interest in cryptocurrency adoption.

The president-elect has also appointed several crypto-friendly individuals to key positions in his upcoming administration. Howard Lutnick has been selected as commerce secretary, while Paul Atkins is set to lead the Securities and Exchange Commission, further indicating Trump’s supportive stance toward digital assets.

At the state level, Ohio House Republicans Leader Derek Merrin has introduced House Bill 703, which would allow the state treasurer to invest in Bitcoin and create an “Ohio Bitcoin Reserve” within the state treasury.

Merrin, the former Mayor of Waterville, announced the bill on social media platform X. The proposed legislation aims to protect public funds against inflation by incorporating Bitcoin into the state’s investment portfolio.

Ohio currently holds $72.16 billion in public debt, according to Statista. This debt consists mainly of general obligation bonds and special obligation bonds used to fund infrastructure, education, and other public projects.

The state-level initiative has gained support from various crypto advocates. U.S. Senator Cynthia Lummis argues that including Bitcoin in state reserves would enhance financial strength, particularly as more businesses and government agencies begin accepting it as a form of payment.

Matthew Sigel, head of Digital Assets Research at VanEck, suggests that government adoption of Bitcoin could encourage more corporations to embrace digital assets, further establishing their role in global finance.

The Treasury’s proposed program would operate within the Exchange Stabilization Fund, an existing mechanism typically used for foreign exchange intervention and international monetary operations.

If implemented, these federal and state initiatives would represent the first formal government Bitcoin reserves in the United States, potentially setting a precedent for other states and countries to follow.

The draft executive order specifically emphasizes the goal of maintaining U.S. leadership in digital assets while building economic resilience and global financial influence.