Bloomberg: Trump's Strategic Bitcoin Reserve Plan Faces Legal and Jurisdictional Hurdles

Jinse Finance reported that on July 7, according to Bloomberg, U.S. President Trump’s plan to establish a strategic Bitcoin reserve is facing legal and jurisdictional obstacles. Early in his term, Trump signed an executive order aiming to build the reserve using Bitcoin the government already holds from criminal or civil forfeitures, and to create a separate digital asset inventory. The order requires the Treasury Department and Commerce Department to formulate a budget-neutral acquisition strategy that does not increase the burden on taxpayers.The report noted that so far, no one has questioned whether the Treasury Department has the legal authority to manage the reserve, but discussion has shifted to the possibility of placing the reserve under the jurisdiction of the Commerce Department. In addition, due to Bitcoin’s significant price volatility, whether the digital asset can be held “indefinitely” has also raised concerns.A White House spokesperson stated that the government will continue to move forward with the reserve plan and assess the optimal structure. In Congress, bipartisan lawmakers have introduced bills seeking to codify the executive order, including provisions to acquire 1 million Bitcoin within five years using a budget-neutral strategy.