President Donald Trump's strategic bitcoin reserve plan is encountering legal and jurisdictional obstacles, according to a Bloomberg report citing people familiar with the matter. Trump outlined the reserve early in his presidency, funded primarily by bitcoin already owned by the government through criminal or civil forfeitures, with the Treasury Department and Commerce Department directed to develop budget-neutral acquisition strategies. Questions have now emerged about whether Treasury can legally manage the reserve, prompting discussions about relocating it to the Commerce Department, while concerns persist over whether bitcoin can be held indefinitely given its volatility. The White House confirmed the administration continues evaluating the best structure for the reserve and digital asset stockpile.
Treasury and Commerce Departments Debate Reserve Management Authority
Bloomberg reported on Monday that conversations have pivoted to placing the reserve inside the Commerce Department amid questions about Treasury's legal capacity to manage it. An overall issue under discussion is whether bitcoin can be held indefinitely, given bitcoin's volatility, according to the report. White House spokesperson Liz Huston stated in an emailed statement that the administration is continuing to work on its plans for the reserve. "President Trump campaigned on a vision of cementing America as the global capital of cryptocurrency and other cutting-edge technologies," Huston said. "To deliver on the President's vision, the Trump administration continues to evaluate the best structure for a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile." The Commerce Department and Treasury Department did not immediately respond to requests for comment from The Block. In April, White House crypto adviser Patrick Witt said he expected a big announcement in the next few weeks on next steps for the reserve, but it has not yet materialized.
Lummis-Begich Bill Proposes 1 Million Bitcoin Acquisition Over Five Years
Lawmakers in the House and Senate have been working on bills to codify Trump's executive order. A bill from Sen. Cynthia Lummis, R-Wyo., and Rep. Nick Begich, R-Alaska, would build upon the order and include language for acquiring 1 million bitcoin over five years using budget-neutral strategies. The White House did not immediately respond to a request for comment on the status of the anticipated announcement.
FAQ
What legal issues is Trump's bitcoin reserve facing?
Questions have been raised about whether the Treasury Department can legally manage the reserve, according to Bloomberg reporting citing people familiar with the matter. Discussions have also focused on whether bitcoin can be held indefinitely given its volatility.
What does the Lummis-Begich bill propose for the bitcoin reserve?
The bill from Sen. Cynthia Lummis and Rep. Nick Begich would codify Trump's executive order and include language for acquiring 1 million bitcoin over five years using budget-neutral strategies.
