Federal Agencies Lock Horns Over Control of US Strategic Bitcoin Reserve: Bloomberg Report
This development comes after White House crypto adviser Patrick Witt stated in May that the administration was reviewing the legal considerations involved in establishing a Bitcoin reserve.
The Trump administration's initiative to create a US Strategic Bitcoin Reserve has encountered a significant obstacle, with the Treasury and Commerce departments reportedly in disagreement regarding the reserve's organizational structure and which federal agency should hold principal supervisory responsibility for the cryptocurrency assets.
An executive order issued in March 2025 by US President Donald Trump specified that the SBR would be established within the Treasury Department, with additional agencies providing support for asset confiscations to expand the reserve's holdings.
Nevertheless, questions have surfaced about whether the Treasury possesses sufficient legal authorization to administer the Bitcoin (BTC) assets, in part due to the cryptocurrency's price fluctuations, according to a Bloomberg report published Monday that cited sources with knowledge of the situation.
The Commerce Department has positioned itself as an alternative candidate for supervising the reserve, according to these sources. Additionally, the Department of Justice is reportedly collaborating with both departments to identify legally permissible approaches, the sources indicated.
The establishment of a Bitcoin reserve represents a central component of Trump's strategy to establish the US as the "crypto capital of the world," signifying a substantial transformation in how the government handles digital currencies by treating Bitcoin as a strategic reserve holding instead of merely confiscated property.
"To deliver on the President's vision, the Trump administration continues to evaluate the best structure for a Strategic Bitcoin Reserve and US Digital Asset Stockpile," White House spokesperson Liz Huston told Cointelegraph.
At present, the US maintains possession of 328,372 Bitcoin valued at $21.1 billion — representing the largest national holdings globally — though it has liquidated certain amounts through judicially mandated sales throughout recent years.
Senators look to codify the Bitcoin reserve
Congressional legislators have undertaken initiatives to formalize the Bitcoin reserve through legislation, including the BITCOIN Act and ARMA Act, which were presented in May and aim to accumulate 1 million Bitcoin across a five-year period utilizing fiscally neutral approaches.
Patrick Witt, among the White House's leading crypto advisers, characterized ARMA as "Version 2" of the BITCOIN Act and noted that the White House had invested considerable effort analyzing the legal ramifications 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.
According to ARMA's provisions, Bitcoin holdings must be maintained for a minimum of 20 years unless sold for the purpose of decreasing America's national debt, which is approaching $40 trillion.
Bitcoin reserve developments viewed bullishly
Notwithstanding the bureaucratic complications, numerous industry proponents argue that the SBR has potential to bolster the argument for Bitcoin as a strategic reserve holding.
"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 possess Bitcoin holdings, El Salvador remains the sole country that has officially created a Bitcoin reserve and continues to make regular acquisitions.