President Donald Trump’s plans for a strategic bitcoin reserve are hitting a legal and jurisdictional snag, according to reporting from Bloomberg.
The original plan
Trump laid out his plan for the reserve early in his presidency, funding it mainly through bitcoin already owned by the government through criminal or civil forfeitures, alongside a separate digital asset stockpile.
The order also directed the Treasury Department and Commerce Department to come up with budget-neutral strategies for acquiring bitcoin that would not cost taxpayers.
The jurisdictional questions
Questions have now been raised about whether the Treasury can legally manage the reserve, Bloomberg reported on Monday, citing people familiar with the matter.
Conversations have pivoted to potentially housing the reserve inside the Commerce Department instead.
Another issue under discussion is whether bitcoin can be held “indefinitely,” given the asset’s volatility.
White House response
In an emailed statement to The Block, White House spokesperson Liz Huston said the administration is continuing its work on the reserve:
“President Trump campaigned on a vision of cementing America as the global capital of cryptocurrency and other cutting-edge technologies. 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.”
Congressional action
Back in April, top crypto adviser Patrick Witt said he expected a “big announcement” within weeks, but that has not materialized.
Meanwhile, lawmakers are working to codify the executive order. A bill from Sen. Cynthia Lummis, R-Wyo., and Rep. Nick Begich, R-Alaska, would include language for acquiring 1 million bitcoin over five years using “budget-neutral strategies.”
