President Trump’s executive order to create a strategic Bitcoin reserve has run into legal and bureaucratic hurdles, as multiple federal departments seek control over the proposed crypto stockpile.
How Will The Government Structure Bitcoin Reserves?
The Trump administration is weighing how to structure the reserve after concerns emerged over whether the U.S. Treasury Department has the legal authority to manage the Bitcoin (CRYPTO: BTC) holdings, Bloomberg reported on Monday, citing people familiar with the matter.
The reserve was designed to hold Bitcoin seized by federal agencies, with the possibility of future budget-neutral purchases.
However, the Commerce Department has emerged as a possible alternative home for the reserve, while the Justice Department’s Office of Legal Counsel is working with Treasury and Commerce to review legally available options.
White House spokesperson Liz Huston said the administration “continues to evaluate the best structure for a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile.”
The U.S. government already holds more than $20 billion worth of Bitcoin, according to Arkham Intelligence.
The White House has argued that premature sales of seized Bitcoin have cost taxpayers about $17 billion over time.
Why It Matters
While talking to reporters on July 6, President Trump sidestepped a question about whether Bitcoin would be integrated into Trump accounts.
He reiterated his strong support for cryptocurrency as a strategic industry the U.S. must lead to prevent China from gaining an advantage.
Trump said while crypto adoption has grown rapidly unlike during the Biden administration’s, the pro-crypto stance has helped position the U.S. as the global leader in digital assets also focusing on parallel investments in AI and energy infrastructure.
A market on Polymarket titled “US national Bitcoin reserve before 2027?” gives a 20% chance of a strategic Bitcoin reserve being established by the end of the year.
Image: Shutterstock
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