Obscure Laws Stall US Bitcoin Reserve, White House Says
News
Efforts to establish a United States strategic reserve of Bitcoin (BTC) are advancing, but obscure legal provisions are delaying progress, according to White House Crypto Council Director Patrick Witt. He said on the Crypto in America podcast that multiple federal agencies are evaluating the legal and regulatory framework and that the initiative remains a priority.
Witt noted that interagency reviews involving the Department of Justice (DOJ) and the Office of Legal Counsel (OLC) are assessing which entities have authority to implement the program, adding that differing statutory mandates are a key challenge.
In March 2025, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile encompassing altcoins and other cryptocurrencies.
Trump signs the Strategic Bitcoin Reserve and Digital Asset Stockpile order. Source: Margo Martin
The move, viewed as a potential milestone for nation-state participation in digital assets, drew mixed reactions from the Bitcoin community, with some market participants arguing the administration had not met expectations.
Community response to the strategic reserve plan
The executive order specifies that the federal government will not sell its Bitcoin and will add to the reserve only through BTC obtained via asset forfeiture. It does not authorize purchasing Bitcoin or other digital assets on the open market, a limitation that prompted criticism from some Bitcoin advocates.
The US government’s total crypto holdings, including BTC, shown in dollar terms. Source: Arkham Intelligence
Bitcoin investor Justin Bechler argued that expectations for a federal Strategic Bitcoin Reserve are unrealistic, asserting that there has been no substantive movement toward acquiring a fixed-supply asset and characterizing political statements on the topic as vague and opportunistic.
In July 2025, the administration released a long-anticipated report on digital asset policy that did not provide further details on a strategic BTC reserve, prompting additional pushback from parts of the Bitcoin community.
In August 2025, Treasury Secretary Scott Bessent proposed budget-neutral approaches for potential BTC acquisitions that would not increase the annual deficit. Options discussed included converting portions of other reserve assets into Bitcoin or revaluing precious metals holdings and using gains to purchase BTC, which renewed speculation about potential open-market activity by the government.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
