Hidden Legal Minefield Threatens to Derail U.S. Bitcoin Reserve Plans, Warns White House Crypto Chief
So, the U.S. is inching closer to setting up a Bitcoin strategic reserve, but surprise—some “obscure” legal red tape is throwing a wrench in the works. Patrick Witt from the White House Crypto Council spills the beans: it’s not the “can we?” but more the “who exactly gets to do it?” puzzle keeping things tangled. Now, if you thought Trump’s 2025 executive order was the green light for a Bitcoin bonanza, think again. The government’s playing it safe, only adding BTC from seized assets, not hitting the open market, which has left many crypto enthusiasts feeling a bit jilted. Is the promise of a national Bitcoin reserve just that—an elusive promise? Or could budget-neutral strategies finally tip the scales? Hang tight, because this digital chess game is far from over. LEARN MORE.
Progress is being made toward establishing a Bitcoin (BTC) strategic reserve in the United States, but “obscure” legal provisions are holding up the process, according to Patrick Witt, the director of the White House Crypto Council.
Several government agencies are discussing the legalities and regulatory issues of establishing a Bitcoin strategic reserve, including the Department of Justice (DOJ) and the Office of Legal Counsel (OLC), Witt told the Crypto in America podcast. He said:
“It seems straightforward, but then you get into some obscure legal provisions, and why this agency can’t do it, but actually, this other agency could. We’re continuing to push on that. It is certainly still on the priority list right now.”
US President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a “Digital Asset Stockpile” that included altcoins and other types of cryptocurrencies in March 2025.
Establishing a nation-state Bitcoin reserve would be a landmark moment for the world’s first digital currency. However, some in the Bitcoin community have been critical of the executive order, criticizing the Trump administration for underdelivering on its promises.
Related: Sygnum sees tokenization and state Bitcoin reserves taking off in 2026
The Bitcoin community feels short-changed by the strategic reserve announcement
Trump’s executive order stipulated that the US government would not sell any of its Bitcoin holdings and only add to the strategic reserve through BTC seized in asset forfeiture cases.
The executive order does not allow the government to acquire more Bitcoin or digital assets on the open market, which drew criticism from the Bitcoin community.
“The belief that the federal government will one day build a Strategic Bitcoin Reserve requires a complete detachment from reality,” Bitcoin maximalist Justin Bechler said.
“There is no movement toward a Bitcoin reserve. There is no intention to acquire a fixed-supply asset in good faith. There are only empty speeches, vague references and opportunistic pandering from Washington politicians,” he added.
In July 2025, the Trump administration released a long-awaited report on digital asset policy that did not include additional details on a strategic BTC reserve, which drew further backlash from the Bitcoin community.
US Treasury Secretary Scott Bessent proposed in August 2025 that the government could acquire BTC through budget-neutral strategies, which do not add to the annual budget deficit.
The announcement renewed hopes that the US government could start buying BTC on the open market through converting portions of other reserve assets to BTC or revaluing its previous metals holdings and using those gains to acquire more Bitcoin.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
