US Bitcoin Reserve Faces Delays Amid Federal Agency Power Struggle: Bloomberg

Patrick Witt, the White House’s crypto adviser, said in May that the administration was reviewing the legal framework surrounding the creation of a Bitcoin reserve. The latest report builds on those earlier remarks, as the proposal continues to be evaluated.

The Trump administration’s effort to create a US Strategic Bitcoin Reserve has reportedly encountered a setback, with the Commerce and Treasury departments disagreeing over its structure and which agency should take primary responsibility for overseeing the reserve’s holdings.

US President Donald Trump’s March 2025 executive order directed the Strategic Bitcoin Reserve (SBR) to be placed under the Treasury Department, while other federal agencies were assigned roles in supporting asset seizures to help expand the reserve.

Concerns have surfaced over whether the Treasury Department has the legal authority to oversee Bitcoin (BTC) holdings, largely due to the asset’s price volatility, Bloomberg reported on Monday, citing people familiar with the discussions.

The Commerce Department has reportedly become a leading candidate to oversee the reserve, according to the sources. They added that the Department of Justice is also working alongside both departments to evaluate the legal options currently available.

The Bitcoin reserve remains a central part of Trump’s plan to position the US as the “crypto capital of the world.” The initiative marks a significant shift in the government’s approach to digital assets, treating Bitcoin as a strategic reserve asset instead of simply a seized commodity.

The US currently holds 328,372 Bitcoin valued at approximately $21.1 billion, the largest government-owned stash among nation-states. However, portions of those holdings have been sold over the years through court-ordered proceedings.

Lawmakers have introduced the BITCOIN Act and the ARMA Act in Congress to formally establish the Bitcoin reserve. Unveiled in May, the proposals aim to acquire 1 million Bitcoin over five years through budget-neutral strategies.

US Senators Push to Enshrine the Strategic Bitcoin Reserve in Law#

Patrick Witt, one of the White House’s leading crypto advisers, described the ARMA Act as “Version 2” of the BITCOIN Act. He also said the White House had devoted considerable time to reviewing the legal implications of establishing a Bitcoin reserve.

“It’s a breakthrough as far as getting everything in place — legally sound — properly safeguarding the assets,” Witt said at the time.

Under the ARMA Act, Bitcoin must be retained for a minimum of 20 years unless it is sold to help reduce the US national debt, which is approaching $40 trillion.

Bitcoin Reserve Progress Seen as a Bullish Signal for the Market#

Despite the ongoing disagreements between federal agencies, many industry advocates argue that the Strategic Bitcoin Reserve (SBR) could reinforce Bitcoin’s role as a strategic reserve asset.

“The Strategic Bitcoin Reserve isn’t just bullish for Bitcoin. It validates an entirely new category of capital allocation,” Tim Kotzman, host of the Bitcoin Treasuries Podcast, said.

“Public companies moved first. Nation-states are beginning to follow.”

Although 15 nation-states currently hold Bitcoin, only El Salvador has officially established a Bitcoin reserve and continues to make regular purchases.