Trump’s Strategic Bitcoin Reserve Plan Stalls on Treasury Authority, Jurisdiction Questions

President Donald Trump’s plan to establish a strategic Bitcoin reserve has run into legal and jurisdictional hurdles.

Bloomberg, citing people familiar with the matter, reported on July 6 that questions have emerged over whether the Treasury Department can legally manage the reserve assets. Officials have also discussed transferring jurisdiction from the Treasury Department to the Commerce Department. Another issue is whether the government can hold Bitcoin indefinitely given its sharp price swings.

Early in his term, Trump issued an executive order outlining plans to build the reserve with Bitcoin seized through criminal and civil forfeiture proceedings. He also instructed the Treasury and Commerce departments to devise budget-neutral ways to buy additional Bitcoin without burdening taxpayers.

White House spokeswoman Liz Huston said in an emailed statement to The Block that Trump campaigned on a vision of making the US the global center for digital assets and advanced technology. The administration continues to review the best structure for a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, she added.

The issue is also being taken up on Capitol Hill. Republican Senator Cynthia Lummis and Representative Nick Begich are advancing legislation to codify the executive order. The bill calls for buying 1 million Bitcoin over five years on a budget-neutral basis.

Patrick Witt, the White House’s senior adviser on digital assets, said in April that a “major announcement” on the next phase of the reserve plan would come within weeks. No specific announcement has been made so far.