Trump's Strategic Bitcoin Reserve Hits Snag as Treasury and Commerce Vie for Oversight

The Trump administration's effort to create a Strategic Bitcoin Reserve is stalled as the Treasury Department and the Commerce Department dispute who should control and oversee federally seized Bitcoin (BTC), according to people familiar with the matter. The White House said the framework is still under development, indicating the project is delayed rather than shelved. Press secretary Liz Huston said the administration is still weighing the best structure for both the reserve and a broader U.S. Digital Asset Stockpile. The central sticking point is legal: whether Treasury has clear statutory authority to hold Bitcoin—a highly volatile asset—as a federal reserve asset. That uncertainty has elevated Commerce as a potential alternative custodian. The Justice Department's Office of Legal Counsel is working with both agencies to design a structure that complies with existing law, the people said. Key issues remain open, including custody arrangements, independent audits, and how Congress may ultimately be involved. For now, the reserve exists in concept but lacks an operational, funded program. The initiative stems from President Trump's March 2025 executive order directing the Treasury secretary to set up a dedicated office to manage Bitcoin holdings. The order said the reserve would consist of Bitcoin forfeited through criminal and civil proceedings, including coins already controlled by federal agencies, and instructed that Bitcoin placed into the reserve should be retained as a long-term asset rather than sold. The same order also required Treasury to examine legal and investment questions—including where accounts should be housed and whether new legislation would be needed—a review that has now surfaced the impasse. On-chain data indicates the U.S. government controls about 328,372 Bitcoin, valued around $21.1 billion at current prices, making it the largest nation-state holder. Those holdings were accumulated through court-ordered seizures over several years. Washington has periodically sold portions, sometimes well below Bitcoin's all-time high. The White House has said earlier sales cost taxpayers more than $17 billion in foregone gains, arguing that consolidated long-term custody would be strategically beneficial and that holdings should be centralized rather than dispersed across agencies. Separately, lawmakers are seeking to codify the reserve. Two bills introduced in May—the BITCOIN Act and the ARMA Act—would direct the government to acquire up to 1 million Bitcoin over five years using "budget-neutral" strategies that do not increase the deficit. Supporters say statutory backing would protect the program from being reversed by a future administration, since the current framework rests on an executive order. Neither bill has advanced out of committee, and the interagency custody dispute could further complicate the legislative path. White House crypto adviser Patrick Witt has described the ARMA Act as a "version 2" of the earlier BITCOIN Act and said officials spent significant time assessing the legal ramifications of establishing a reserve. Under ARMA, acquired Bitcoin would have to be held for at least 20 years unless sold to reduce the national debt, which is nearing $40 trillion. Market snapshot: COINOTAG's proprietary 42-indicator composite S/R scoring engine flags resistance at $63,820 with a score of 76/100, citing a convergence of the Fibonacci 0.236 retracement, the R1 pivot, and a high-volume node. Support at $61,887 scores 73/100 based on the 20-day SMA and the Ichimoku cloud base. With spot near $62,930 and RSI at 48.5, the downtrend remains intact and price is compressed between those levels. Derivatives data shows a slightly positive funding rate of 0.0048%, open interest of $12.35 billion, and a 1.59 long/short ratio (61% long), pointing to cautious optimism. A Fear & Greed reading of 27 signals entrenched fear. A daily close above $63,820 would target $67,369; a break below $61,887 would negate the bullish setup.