US Bitcoin Reserve Plan Stalls Over Bureaucratic Dispute
The Trump administration's push to create a federal Bitcoin reserve is reportedly hitting a roadblock due to a dispute between the Treasury and Commerce departments.
The Update
Efforts to establish a federal Bitcoin reserve are reportedly stalling as federal agencies clash over which department should hold primary control. The Trump administration’s March 2025 executive order called for the Strategic Bitcoin Reserve to be housed within the Treasury Department, with other agencies assisting with asset seizures. However, Bloomberg reports that the Treasury may lack the legal authority to manage such volatile assets, leading the Commerce Department to emerge as a contender for oversight. The Department of Justice is reportedly working with the two departments to determine legally available options.
Why It Matters
This bureaucratic dispute represents a significant hurdle for the administration’s goal to position the U.S. as the “crypto capital of the world.” The plan relies on a shift in how the government treats digital assets, moving from seized commodities to strategic reserve assets. Progress has been complicated by the fact that presidential orders do not carry the weight of law, and Congress has yet to pass the legislation needed to fully back up the reserve.
What To Watch
Observers should monitor whether the dispute resolves in favor of the Treasury or shifts to the Commerce Department. Additionally, the administration’s ability to advance the BITCOIN Act and ARMA Act—which seek to codify the reserve and acquire 1 million Bitcoin over five years—will determine the timeline for the stockpile’s creation.
Sources
- Cointelegraph — Details on the executive order, agency disputes, and legal authority concerns.
- CoinDesk — Context on the White House's ongoing evaluation and the role of Congress.