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Bitcoin's U.S. reserve still a work-in-progress as federal agencies hash it out
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- DeepHorus
The White House has acknowledged that establishing a strategic Bitcoin reserve for the United States remains a work-in-progress, as federal agencies continue to evaluate the best structure for the fund. President Donald Trump issued an executive order in March 2025 to create a long-term bitcoin reserve and a separate stockpile of other cryptocurrencies. However, the process has been complicated by uncertainty over where to house the reserves, with both the Treasury and Commerce departments vying for control, according to a Bloomberg report. The White House stated it is still assessing how to deliver on Trump's vision of making America the global capital of cryptocurrency.
Trump's executive order directed federal agencies to inventory existing crypto holdings and devise a plan for building the funds. The exact amount of bitcoin the U.S. government holds has not been disclosed, but estimates suggest it owns more than 300,000 bitcoins, worth approximately $21 billion at current prices. These holdings would form the core of a long-term investment designed to be held for an extended period, rather than used during market emergencies. The administration has sought ways to acquire more bitcoin without using taxpayer money, but no concrete purchases have been made.
Key figures highlight the challenges facing the initiative. When Trump issued the order, Bitcoin was trading at around $93,000, but the cryptocurrency has since dropped by about a third to just above $64,000. If the government had started buying at that time, it would have incurred significant paper losses. Additionally, the White House's chief crypto adviser, Patrick Witt, and his predecessor have emphasized that Congressional legislation is necessary to fully back the formation and activation of the crypto funds, as executive orders do not carry the weight of law.
The implications of this delay are significant for the crypto sector, which had widely considered the bitcoin reserve a done deal. Digital asset enthusiasts and lobbyists have grown frustrated with the lack of action, uncertain whether the reserves will ever materialize. The political landscape adds further uncertainty: if Republicans lose their majority in the House or Senate during the midterm elections, any formalizing legislation for Trump's concept would be unlikely to advance.
Reactions from the administration have been measured. White House spokeswoman Liz Huston stated, "President Trump campaigned on a vision of cementing America as the global capital of cryptocurrency... To deliver on the president’s vision, the Trump administration continues to evaluate the best structure for a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile." Meanwhile, Trump himself has amassed personal bitcoin holdings exceeding $50 million, according to his recent financial disclosure, which has fueled skepticism about the administration's commitment to a public reserve.
Looking ahead, even if the administration resolves the structural issues, it may struggle to officially transfer existing bitcoin holdings into the reserve. The lack of legislative progress and the upcoming midterm elections pose major obstacles. Without bipartisan support, the bitcoin reserve remains a theoretical concept rather than a realized policy. The crypto community will be watching closely in the coming weeks for any updates from White House advisers, who have promised a statement soon. The fate of America's strategic bitcoin reserve ultimately hinges on political consensus and sustained executive action.
