Trump Strategic Bitcoin Reserve Faces Legal Questions Over Treasury Role

TLDR

• Trump’s Strategic Bitcoin Reserve faces legal authority questions.
• Bloomberg reported Treasury’s role in managing BTC is under review.
• Commerce may be considered as an alternative reserve manager.
• The reserve would use Bitcoin seized through forfeiture cases.
• Lummis and Begich back a bill to acquire 1M BTC over five years.

President Donald Trump’s Strategic Bitcoin Reserve plan is facing legal and agency questions over which federal department can lawfully manage the government’s Bitcoin holdings, Bloomberg reported on Monday.

Trump ordered the creation of the reserve early in his presidency as part of his plan to make the United States a major crypto hub. The reserve was expected to use Bitcoin already owned by the federal government through criminal and civil forfeiture cases.

The order also directed the Treasury Department and Commerce Department to find budget-neutral ways to acquire more Bitcoin without adding taxpayer costs. However, officials are still reviewing the legal structure for holding and managing the reserve.

Treasury Role Faces Legal Review

Trump’s order initially placed the Strategic Bitcoin Reserve under the Treasury Department. The plan called for the reserve to hold seized Bitcoin rather than sell it.

Questions have since been raised over whether Treasury has the legal authority to manage the reserve. Bloomberg reported that officials are also discussing whether the reserve could instead sit inside the Commerce Department.

The Justice Department’s Office of Legal Counsel is working with both departments on the issue. Its role is to review legally available options for carrying out Trump’s reserve policy.

Another question is whether the government can hold Bitcoin indefinitely. That issue has drawn attention because Bitcoin’s price can move sharply over short periods.

White House Says Structure Still Under Review

White House spokesperson Liz Huston said the administration is still evaluating the best setup for the reserve and the separate U.S. Digital Asset Stockpile.

Huston said, “President Trump campaigned on a vision of cementing America as the global capital of cryptocurrency and other cutting-edge technologies.”

She added,

The statement confirms that the reserve plan remains active, but it does not provide a timeline for when the administration will finish the legal review or announce the final structure.

Bitcoin Reserve Announcement Delayed

White House crypto adviser Patrick Witt said in April that he expected a “big announcement” on the reserve within weeks. That announcement has not yet taken place.

The delay has kept attention on how the federal government will treat seized Bitcoin. The U.S. government is already one of the largest Bitcoin holders in the world.

Arkham data cited in reports showed the government holds more than $20 billion worth of Bitcoin at current prices. Most of those holdings came from criminal and civil forfeiture actions.

The reserve plan would change how the government manages those assets. Instead of selling Bitcoin after seizure, the administration wants to retain it as part of a national digital asset reserve.

Lawmakers Push Bitcoin Reserve Bill

Congress is also working on legislation to support Trump’s reserve plan. Senator Cynthia Lummis and Representative Nick Begich have backed a bill that would build on the executive order.

The proposal calls for the United States to acquire 1 million Bitcoin over five years through budget-neutral strategies. The bill would also give the reserve stronger legal footing if passed.

Trump recently said he became involved in crypto partly for politics and because he saw growing public interest. He said,

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