Progress on Bitcoin Reserve Stalled by 'Obscure' Legal Provisions
In March 2025, President Donald Trump signed an executive order to establish a strategic Bitcoin (BTC) reserve. This reserve is intended to consist of Bitcoin forfeited by U.S. federal agencies as part of asset seizures. Months have passed since the order, and the cryptocurrency community has been anticipating the formal creation of this reserve. Recently, a White House crypto advisor provided insight into the reasons behind the delay.
Patrick Witt, the Executive Director of the President's Council of Advisors for Digital Assets at the White House, appeared on the "Crypto in America" podcast on January 13. He stated that while the administration remains committed to establishing the strategic Bitcoin reserve, "obscure" legal provisions are currently holding up the process. Witt elaborated on the legal complexities that government agencies are navigating to establish the reserve.
“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."
Witt reassured that the Bitcoin reserve remains a priority for the administration. He confirmed that various agencies, including the Department of Justice (DOJ) and the Office of Legal Counsel (OLC), are actively deliberating the legal and regulatory issues associated with its establishment.
Unfulfilled Promise of a 'Bitcoin Superpower'
President Trump had previously pledged to transform the United States into the "Bitcoin superpower" and the global "crypto capital." However, the lack of tangible progress on the Bitcoin reserve initiative has led to dissatisfaction within the crypto community. When the White House released its crypto policy report in July 2025, it acknowledged the reserve but offered no new details regarding its implementation.
In August of the previous year, Treasury Secretary Scott Bessent initially stated that the administration would not purchase additional Bitcoin for the reserve and would solely utilize confiscated assets. However, he later reversed this stance, asserting that the Treasury was committed to exploring budget-neutral avenues to acquire more Bitcoin for the reserve's expansion.
Further details emerged when S. Matthew Schultz, the Chairman and CEO of CleanSpark (Nasdaq: CLSK), met with Bessent and Senate Banking Committee Chairman Tim Scott in October. Schultz reported that the two senior officials indicated the U.S. government holds approximately $17 billion in Bitcoin, which it does not intend to sell, and plans to continue accumulating more BTC.
At the time of writing, Bitcoin was trading at $95,055.78.