The Trump administration’s plan for a strategic Bitcoin reserve has run into legal and agency questions.
Summary
- Trump’s Bitcoin reserve plan faces legal questions over who can control BTC holdings seized by the government.
- Treasury was named in Trump’s order, but Commerce emerged as another possible reserve manager.
- Custody, audits and Congress remain at the heart of the debate over the reserves framework.
Bloomberg reported that officials are still deciding which department can hold and manage the government’s Bitcoin.
The question is whether Treasury has clear legal authority to control a volatile digital asset as a federal reserve asset. The Commerce Department has also emerged as a possible home for the reserve, while the Justice Department’s Office of Legal Counsel is working with the two agencies on a legal structure. The review keeps the plan active, but it also shows that control of the reserve remains uncertain.
Treasury’s role under legal review
Trump’s March 2025 executive order states that the Treasury Secretary should create an office to manage the Bitcoin Strategic Reserve. The order states that the reserve will hold BTC confiscated in criminal or civil proceedings, including assets already controlled by federal agencies.
The order also states that government BTC placed in reserve should not be sold and should be kept as a reserve asset. Nonetheless, the same order required the Treasury to review legal and investment issues, including where the accounts should be placed and whether new legislation was needed to manage the reserve.
White House says structure still under review
A White House spokesperson told CoinDesk that the administration continues to evaluate the best structure for the Bitcoin Strategic Reserve and the U.S. digital asset stockpile.
“To realize the President’s vision, the Trump administration continues to evaluate the best structure,” said Liz Huston.
As previously reported by crypto.news, White House crypto adviser Patrick Witt said in May that officials had made progress on legal and custody safeguards. He called the work a “breakthrough” and said an announcement was expected in the coming weeks, although the latest report shows the structure remains under consideration.
Congress and the Guard remain key issues
The latest report shows that the reservation still depends on more than a presidential decree. As crypto.news previously reported, the United States already has a Bitcoin reserve on paper, but the main question is whether it can become a functioning program with clear rules for custody and purchase.
Lawmakers also tried to turn the reservation into law. crypto.news previously reported that the American Reserve Modernization Act would create a Treasury-managed Bitcoin reserve, require a 20-year holding rule, and call for audits, proof-of-reserve reporting, and reviews of budget-neutral purchasing methods. No federal bill has passed, leaving executive agencies to resolve the custody issue for now.
Data from BitcoinTreasuries shows that the US government held 328,372 BTC, worth around $20.7 billion as of July 7. The tracker lists the United States as the largest known government holder of Bitcoin, ahead of China, the United Kingdom, Ukraine and El Salvador.
This significant participation gives weight to the reserve plan, but the new legal revision shows that the structure is not regulated.
For now, the debate is not about buying more Bitcoin. These include who can legally control seized BTC, how federal agencies should store them, and what rules should govern a stash built from confiscated assets.
