President Trump's strategic bitcoin reserve hits a legal and jurisdictional snag: Bloomberg
President Donald Trump's plans for a strategic bitcoin reserve are hitting a legal and jurisdictional snag, according to reporting from Bloomberg.
Trump laid out his plan for that reserve early on in his presidency, funded mainly through bitcoin already owned by the government through criminal or civil forfeitures, and 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 will not cost taxpayers.
However, questions have not been raised about whether Treasury can legally manage the reserve, Bloomberg reported on Monday, citing people familiar with the matter.
Conversations have also pivoted to putting the reserve inside the Commerce Department. An overall issue also talked about is whether bitcoin can be held "indefinitely," given bitcoin's (BTC) volatility, according to Bloomberg.
In an emailed statement to The Block, a White House spokesperson said 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," said spokesperson Liz Huston. "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 the Treasury Department did not immediately respond to requests for comment from The Block.
In April, the White House's top crypto adviser Patrick Witt said he had expected a "big announcement" to be coming in the next few weeks on next steps for the reserve, but it has not yet come to fruition.
Meanwhile, 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 that announcement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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