The reserve was established through a March 2025 executive order, and would consist of Bitcoin seized in criminal and civil cases. Officials are still reviewing custody, governance, and legal requirements. The White House says discussions are ongoing, and lawmakers are also considering legislation that would formally establish and regulate the reserve.
Trump Crypto Reserve Delayed
The Trump crypto strategy to establish a Strategic Bitcoin Reserve is still moving forward, but key legal and administrative questions are still unresolved. According to a recent Bloomberg report, officials in the Trump administration are still determining which federal department should ultimately hold and manage the government's Bitcoin holdings.
The main issue centers on whether the US Treasury Department has the legal authority to oversee Bitcoin as a federal reserve asset. While President Donald Trump's executive order, which was signed in March of 2025, directed the Treasury secretary to establish an office responsible for managing the Strategic Bitcoin Reserve, legal experts are still evaluating whether existing laws provide enough authority for the department to perform this role.
As part of this review, the Commerce Department also emerged as a potential alternative to oversee the reserve. The Justice Department's Office of Legal Counsel is now working alongside both agencies to determine the most appropriate and legally compliant framework.
Under Trump's executive order, the Strategic Bitcoin Reserve would consist of Bitcoin that has been forfeited to the federal government through criminal and civil asset seizures. Rather than liquidating these holdings, the administration plans for the Bitcoin to be retained as a long-term reserve asset.
However, the executive order also instructed the Treasury Department to examine several outstanding issues, including custody arrangements, investment considerations, the location of reserve accounts, and whether additional legislation would be required to fully implement the program.
The White House confirmed that discussions are ongoing. White House spokesperson Liz Huston recently stated that the administration is evaluating the best organizational structure for both the Strategic Bitcoin Reserve and the US Digital Asset Stockpile as officials work on fulfilling President Trump's vision for federal digital asset management.
Earlier this year, White House crypto adviser Patrick Witt also indicated that the administration made a lot of progress on legal protections and custody safeguards. At the time, Witt described the work as a breakthrough and suggested that a formal announcement could be made within weeks.
Beyond questions over which department should oversee the reserve, lawmakers are also debating whether the initiative should ultimately be established through legislation rather than relying solely on executive authority. Although the United States effectively holds a Bitcoin reserve through previously seized digital assets, converting those holdings into a formal national reserve requires clear legal rules governing custody, management, reporting, and any future acquisitions.
