US Bitcoin Reserve Plan Moves Forward Despite Legal Obstacles

The United States is making progress toward establishing a strategic Bitcoin (BTC) reserve, but legal hurdles are slowing the process, according to Patrick Witt, director of the White House Crypto Council.

Multiple government agencies, including the Department of Justice (DOJ) and the Office of Legal Counsel (OLC), are reviewing the legal and regulatory aspects of creating a national BTC reserve. Witt explained that while the idea seems straightforward, obscure legal rules determine which agency can act, which has caused delays.

Despite these complications, the project remains a priority for the administration. In March 2025, former President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve and a broader “Digital Asset Stockpile,” which also covers altcoins and other cryptocurrencies.

The order specifies that the government will not sell any of its Bitcoin holdings and will only add to the reserve using BTC seized in asset forfeiture cases. This restriction has drawn criticism from the Bitcoin community because it prevents the government from buying Bitcoin or other digital assets on the open market.

US Bitcoin Reserve Sparks Debate

Many Bitcoin advocates say the order underdelivers. Bitcoin maximalist Justin Bechler criticized the government, calling the idea of a strategic BTC reserve unrealistic and describing government statements as “empty speeches” and political posturing. Frustration grew when a July 2025 report on digital asset policy failed to provide more details about the reserve.

Renewed optimism came in August 2025 when U.S. Treasury Secretary Scott Bessent proposed budget-neutral strategies for acquiring BTC. These methods could allow the government to buy Bitcoin without increasing the federal deficit, for example, by reallocating other reserve assets or using gains from metals holdings.

If implemented, this could help the U.S. gradually increase its Bitcoin holdings and move closer to building a national reserve. While legal and practical challenges remain, discussions and proposals show that the U.S. government is actively exploring ways to create a strategic Bitcoin reserve, though many in the crypto community remain cautious and skeptical.