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US strategic Bitcoin Reserve stalls as agencies clash over control: Bloomberg
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The Trump administration’s plan to establish a US Strategic Bitcoin Reserve has encountered a significant hurdle, as federal agencies clash over oversight and legal authority, according to a Bloomberg report. The Commerce and Treasury departments are at odds over which should manage the proposed reserve, delaying progress on President Donald Trump’s March 2025 executive order, which originally designated Treasury as the custodian. The dispute centers on whether Treasury has the legal capacity to handle Bitcoin's volatility, with sources familiar indicating that the Commerce Department has emerged as a contender to oversee the holdings. The Department of Justice is also involved, working with both agencies to explore legally viable options for the reserve’s structure.
The Bitcoin reserve initiative is a cornerstone of Trump’s ambition to position the US as the "crypto capital of the world," marking a shift from treating seized digital assets as commodities to embracing them as strategic reserves. The US currently holds 328,372 Bitcoin, valued at approximately $21.1 billion, the largest national stockpile globally, though portions have been sold through court-ordered actions. The White House has emphasized its commitment to evaluating the best structure, with spokesperson Liz Huston stating that the administration continues to assess options for both the Strategic Bitcoin Reserve and a US Digital Asset Stockpile.
Efforts to codify the reserve have advanced in Congress through the BITCOIN Act and the ARMA Act, introduced in May, which propose acquiring 1 million Bitcoin over five years using budget-neutral strategies. White House crypto adviser Patrick Witt described ARMA as "Version 2" of the BITCOIN Act, noting that the administration has thoroughly examined legal implications to ensure compliance and asset protection. Under ARMA, Bitcoin must be held for at least 20 years unless sold to reduce America’s national debt, which now nears $40 trillion.
Industry advocates view the reserve as a bullish development for Bitcoin, validating its role as a strategic asset. "The Strategic Bitcoin Reserve isn’t just bullish for Bitcoin. It validates an entirely new category of capital allocation," said Tim Kotzman, host of the Bitcoin Treasuries Podcast. He noted that while public companies have led, nation-states are beginning to follow, with 15 countries holding Bitcoin, but only El Salvador having formally established a reserve with routine purchases.
Looking ahead, the interagency debate must be resolved before the reserve can move forward. The White House’s legal review and congressional legislation offer pathways, but volatility and jurisdictional concerns remain obstacles. If implemented, the reserve could reshape global crypto policy, but near-term delays highlight the challenges of integrating digital assets into federal financial frameworks.
