Key Takeaways
- Sixteen months have passed since Trump’s executive order establishing the Strategic Bitcoin Reserve, yet implementation remains stalled
- An inter-agency conflict has emerged between Treasury and Commerce over control of the reserve
- The Department of Justice is working to clarify which agency possesses legal jurisdiction
- Two bills—the BITCOIN Act and ARMA Act—have been introduced in Congress to establish formal legal framework
- America’s current Bitcoin holdings total 328,372 BTC, valued at approximately $21 billion
A bureaucratic standoff between two major federal agencies is preventing the launch of the Trump administration’s Strategic Bitcoin Reserve, despite the president signing the directive over a year ago.
In March 2025, President Trump issued an executive order designating the Treasury Department as the custodian for the planned reserve. Additional federal agencies were tasked with contributing to its growth through confiscated digital assets.
However, progress has ground to a halt. According to a Bloomberg report, the Commerce Department has stepped forward as an alternative candidate to manage the government’s Bitcoin holdings.
At the heart of the dispute lies a question of legal jurisdiction. Concerns have surfaced regarding the Treasury Department’s statutory authority to oversee Bitcoin assets, particularly given cryptocurrency’s inherent price fluctuations.
The Department of Justice has entered the fray, collaborating with both competing agencies to determine the legally permissible paths forward.
The White House has remained publicly neutral in the dispute. Press spokesperson Liz Huston stated the administration is “continuing to evaluate the best structure” without endorsing either department’s claim.
Legislative Efforts to Establish Legal Framework
Congress has responded with two separate bills designed to provide statutory backing for the reserve. Both the BITCOIN Act and the ARMA Act, which were introduced in May, propose acquiring as many as one million Bitcoin over a five-year period through fiscally responsible methods.
White House crypto adviser Patrick Witt characterized ARMA as “Version 2” of the earlier BITCOIN Act. He emphasized that the administration has devoted substantial resources to examining the legal complexities of reserve establishment.
ARMA includes a provision requiring any Bitcoin placed in the reserve to remain there for a minimum of 20 years, with sales permitted only to offset the national debt, which now approaches $40 trillion.
Neither bill has advanced to a vote. Should Republicans lose control of the House in upcoming midterm elections, prospects for passage would significantly diminish.
America’s Existing Bitcoin Position
The federal government presently controls 328,372 Bitcoin, worth approximately $21 billion at current market rates. This stockpile makes the United States the world’s largest nation-state holder of Bitcoin.
That said, portions of these assets have been liquidated in previous years through judicial mandates.
When Trump signed the original executive order, Bitcoin was trading near $93,000. Today’s price hovers around $64,000, representing a decline of roughly one-third.
Despite market volatility, some industry voices remain optimistic. Tim Kotzman, who hosts the Bitcoin Treasuries Podcast, suggested the reserve legitimizes “an entirely new category of capital allocation.”
On the international stage, 15 countries now hold Bitcoin reserves. El Salvador stands alone as the only nation to have formally established a dedicated Bitcoin reserve with systematic acquisition programs.
According to his latest financial disclosure forms, Trump personally holds more than $50 million in Bitcoin.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
