Trump Admin's $20B BTC Reserve Plan Hits Snag Over Custody Dispute

The Trump administration is facing a legal and bureaucratic snag over its proposed Strategic Bitcoin Reserve. The reserve, which would initially be funded with Bitcoin seized by the federal government, has been delayed due to disagreements between the Treasury Department and Commerce Department on who should oversee it.

According to a report, President Trump ordered the creation of the reserve last year, with Bitcoin from federal asset seizures intended to be housed inside the Treasury Department. However, concerns arose over whether the Treasury was legally able to manage the holdings.

The Justice Department's Office of Legal Counsel is reportedly reviewing the legal framework to determine if the Treasury has the authority to manage the reserve. The Treasury and Commerce Departments are both under consideration to oversee the reserve, with agencies continuing to explore budget-neutral ways to acquire additional Bitcoin.