The cryptocurrency reserve that Trump had previously promised is now in jeopardy

The Trump administration has faced serious legal and organizational challenges in implementing its plan to create a government Bitcoin reserve. Bloomberg sources familiar with the situation said that the initial concept called for placing the government’s cryptocurrency reserve under the management of the U.S. Department of the Treasury.

According to the original plan, the reserve was to be replenished with Bitcoin confiscated by federal agencies during criminal and civil proceedings, as well as through potential additional purchases without using budget funds. However, a key question arose during the drafting of the proposal: Does the Treasury Department have sufficient authority to store and manage cryptocurrency assets over the long term?

As an alternative, transferring these functions to the U.S. Department of Commerce was considered. The fundamental legal issue is whether current legislation allows the government to hold Bitcoin indefinitely, as provided for in the presidential executive order.

The U.S. Department of Justice confirmed that the Office of the General Counsel, in conjunction with the Treasury Department and the Department of Commerce, is still exploring possible legal mechanisms to fulfill Trump’s campaign promise. The White House has assured that the search for an optimal model for managing the government’s stockpile of digital assets is ongoing. Officials emphasize that consolidating confiscated bitcoins into a single fund will preserve their long-term value and strengthen the U.S.'s position as a global hub for the crypto industry.

According to Arkham Intelligence, the value of Bitcoin under U.S. government control exceeds $ 20 billion. The vast majority of these coins were obtained through seizures as part of criminal investigations. Trump signed an executive order establishing a strategic Bitcoin reserve shortly after taking office.