Patrick Witt, director of the White House Crypto Council, confirmed that obscure legal provisions are delaying the US Strategic Bitcoin Reserve. According to reports, Witt stated the Department of Justice and Office of Legal Counsel are working through complex regulatory issues. He noted the process seems straightforward but involves unclear agency authorities.
President Trump signed an executive order in March 2025 establishing the Strategic Bitcoin Reserve and Digital Asset Stockpile. The order prohibits selling government Bitcoin holdings. New additions come only through asset forfeiture cases, not open market purchases. The US government currently holds approximately 198,000 BTC from law enforcement seizures.
Treasury Secretary Scott Bessent proposed budget-neutral acquisition strategies in August 2025. These methods would allow Bitcoin purchases without increasing the federal deficit. The proposal renewed hope for open market buying through reserve asset conversions. A July 2025 White House digital asset report omitted specific reserve expansion plans.
Why This Development Matters
The legal delays affect the timeline for establishing Bitcoin as a sovereign reserve asset. Multiple federal agencies must coordinate on custody arrangements and regulatory frameworks. Reports indicate that sovereign Bitcoin ownership raises unprecedented legal questions about asset classification and security protocols. Federal agencies need compliance protocols for different digital asset categories.
The current executive order limits reserve growth to seized assets. This restriction disappoints Bitcoin advocates who expected larger government accumulation. Countries are building Bitcoin reserves for financial sovereignty and inflation hedging. The US approach contrasts with other nations pursuing active acquisition strategies.
Bitcoin community members criticized the executive order for underdelivering on promises. Prominent Bitcoin maximalist Justin Bechler called the reserve plan unrealistic. He argued the government shows no genuine intention to acquire Bitcoin. The criticism reflects broader skepticism about Washington's commitment to cryptocurrency adoption.
Global Reserve Competition and Market Impact
The US delays occur as other nations advance Bitcoin reserve strategies. Data shows 27 countries now hold Bitcoin in reserves. Several US states passed Strategic Bitcoin Reserve legislation in 2025. New Hampshire authorized investing up to 5% of state funds in Bitcoin. Arizona established a crypto reserve funded by seized assets and staking rewards.
The interagency coordination challenges reveal tensions between traditional financial regulation and cryptocurrency management. Federal agencies accustomed to regulating crypto markets must now participate as holders. This dual role creates potential conflicts between regulatory oversight and asset management objectives. The legal framework development will set precedents for government cryptocurrency participation.
International financial institutions are watching the US approach closely. Countries with unstable currencies view Bitcoin reserves as tools for financial independence. Nations with strong fiat currencies remain cautious about volatility risks. The US decision will influence whether Bitcoin becomes a standard reserve asset alongside gold and Treasury bonds. Early adopters may gain diversification advantages and attract investment as financial innovation centers.