Efforts to establish a United States strategic Bitcoin reserve are moving forward, but progress is being slowed by lesser-known legal constraints, according to White House Crypto Council Director Patrick Witt. While the initiative remains a government priority, complex interagency rules are complicating implementation.
Witt explained that multiple federal bodies, including the Department of Justice and the Office of Legal Counsel, are reviewing whether existing statutes allow specific agencies to hold or manage Bitcoin on behalf of the federal government. He noted that what initially appears simple becomes difficult once “obscure legal provisions” are examined, limiting which agencies are legally permitted to act.
In March 2025, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve alongside a broader Digital Asset Stockpile. The order mandates that existing government-held Bitcoin cannot be sold, and additions to the reserve must come from seized digital assets, not open-market purchases.
This restriction has drawn criticism from Bitcoin advocates, who argue that without active accumulation, the reserve lacks long-term strategic value. The absence of new details in a July 2025 digital asset policy report further fueled skepticism about the government’s commitment.
In August 2025, Treasury Secretary Scott Bessent suggested that budget-neutral acquisition strategies could allow future Bitcoin purchases without increasing the federal deficit. Supporters see this as a potential path forward, keeping the idea of a true national Bitcoin reserve alive despite ongoing legal hurdles.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.