Key Takeaways Sixteen months have passed since Trump’s executive order establishing a Strategic Bitcoin Reserve, yet implementation remains stalled A jurisdictional battle between Treasury an
A bureaucratic turf war between federal agencies has thrown a wrench into the Trump administration’s ambitious plan to establish a Strategic Bitcoin Reserve.
JUST IN:
U.S. Justice Department Office of Legal Counsel is "working closely with both the Treasury and Commerce departments" to establish a strategic Bitcoin reserve
pic.twitter.com/m0EV4mAs3t
— Bitcoin Magazine (@BitcoinMagazine) July 6, 2026
In March 2025, President Trump issued an executive order designating the Treasury Department as the custodian for this digital asset reserve. The directive also called on additional federal entities to contribute to the stockpile through confiscated assets.
However, more than a year later, the initiative has yet to materialize. According to a Bloomberg report, the Commerce Department has now positioned itself as an alternative candidate for managing the cryptocurrency holdings.
The central dispute revolves around regulatory jurisdiction. Concerns have surfaced regarding Treasury’s legal capacity to manage Bitcoin, with some citing the cryptocurrency’s inherent price fluctuations as a complicating factor.
The Department of Justice has entered the fray, collaborating with both competing agencies to determine viable legal pathways forward.
The White House has maintained neutrality in this inter-agency conflict. Press Secretary Liz Huston stated the administration is “continuing to evaluate the best structure” for implementing the reserve.
Congressional lawmakers have introduced two separate bills designed to provide statutory legitimacy to the reserve concept. Both the BITCOIN Act and the ARMA Act, filed in May, propose accumulating up to one million Bitcoin over a five-year timeline using fiscally neutral mechanisms.
White House cryptocurrency advisor Patrick Witt characterized ARMA as “Version 2” of the BITCOIN Act. He noted that significant White House resources have been dedicated to examining the legal complexities surrounding reserve establishment.
ARMA includes provisions requiring any Bitcoin deposited into the reserve to remain untouched for a minimum of two decades, with the sole exception being sales to offset the national debt, which is nearing $40 trillion.
Neither bill has advanced to passage. Should Republicans forfeit their House majority in upcoming midterm elections, the probability of legislative success would diminish substantially.
The US government presently controls 328,372 Bitcoin, with a market value hovering around $21 billion. This position establishes the United States as the world’s largest sovereign Bitcoin holder.
That said, segments of these holdings have been liquidated periodically through judicially mandated sales.
At the time Trump signed his initial executive order, Bitcoin was trading near $93,000. The price has subsequently declined to approximately $64,000, representing a roughly 33% decrease.
Despite the delays and price volatility, some industry observers maintain optimism. Tim Kotzman, host of the Bitcoin Treasuries Podcast, suggested the reserve legitimizes “an entirely new category of capital allocation.”
On a global scale, 15 nation-states maintain Bitcoin holdings. El Salvador stands alone as the only country to have formally institutionalized a Bitcoin reserve program with regular acquisition protocols.
According to his latest financial disclosure documents, Trump personally holds Bitcoin assets exceeding $50 million.
The post Treasury vs. Commerce: Bureaucratic Battle Stalls US Bitcoin Reserve Launch appeared first on Blockonomi.
