Key Highlights
- Trump’s Strategic Bitcoin Reserve plan is facing legal delays as officials decide which government department should manage it.
- The Treasury Department’s legal authority is being questioned, with the Commerce Department now being considered as an alternative.
- Congress is working to support the reserve with new legislation, while the U.S. already holds over $20 billion worth of seized Bitcoin.
US President Donald Trump’s plan to create a Strategic Bitcoin Reserve is facing legal problems as officials work out how the proposed reserve should be managed. The reserve is a central part of Trump’s crypto plans and was introduced through an executive order signed in March 2025.
According to a Bloomberg report, while the administration wants to move the project forward, it first has to settle questions about who can legally manage the country’s Bitcoin holdings and how the reserve should operate.
A plan to build America’s Bitcoin reserve
The idea behind the Strategic Bitcoin Reserve is to bring together Bitcoin already owned by the U.S. government into one place instead of selling it over time. Most of the Bitcoin would come from assets seized by federal agencies during criminal investigations.
The administration has also asked officials to find budget-neutral ways to add more Bitcoin in the future, meaning the government would not increase spending or use taxpayers’ money to build the reserve. When the plan was first announced, the White House expected the U.S. Treasury Department to oversee the reserve.
Legal questions slow the project
Officials are now examining whether the Treasury Department has the legal authority to manage a national Bitcoin reserve. That issue has become one of the biggest obstacles to moving the project forward.
Because of this, the administration is now looking at other options to make sure the project follows existing laws before any final decision is made.
Commerce department emerges as an option
According to the report, one proposal under consideration would place the reserve under the U.S. Commerce Department instead of the Treasury. Officials are evaluating which structure best aligns with existing law while allowing the administration to implement the president’s digital asset policy.
The U.S. Department of Justice is also involved in the review. Its Office of Legal Counsel is working with both the Treasury and Commerce departments to assess the available legal options and determine how the administration can implement the policy within the limits of federal law.
Can the government hold Bitcoin indefinitely?
Officials are also reviewing whether the government can legally hold Bitcoin for an extended period. Trump’s executive order directs the reserve to retain its Bitcoin rather than sell it. However, because Bitcoin’s price can rise and fall sharply, officials are examining whether keeping the asset indefinitely could create legal or operational issues.
Despite the delays, the White House said work on the reserve is continuing. White House spokesperson Liz Huston said the administration is still evaluating the best structure for both the Strategic Bitcoin Reserve and the separate U.S. Digital Asset Stockpile.
“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.”
Congress pushes to make the reserve official
Meanwhile, lawmakers are actively trying to turn Trump’s executive order into law. Last year, Senator Cynthia Lummis and Representative Nick Begich introduced a bill that would support the reserve and allow the government to acquire up to one million Bitcoin over five years using budget-neutral strategies.
The United States is already one of the world’s largest Bitcoin holders through assets seized in criminal and civil cases. According to blockchain analytics firm Arkham Intelligence, those holdings are worth more than $20 billion at current market prices. The White House has also argued that previous government sales of Bitcoin cost taxpayers about $17 billion in missed value.
Administration officials contend that retaining those holdings in a long-term reserve could strengthen the country’s position as digital assets become a more significant part of the global financial system.
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