US Strategic Bitcoin Reserve Plan Stalls as Treasury and Commerce Vie for Oversight

The Trump administration's proposal to establish a US Strategic Bitcoin Reserve (SBR) is facing an early obstacle: federal agencies are divided over how the reserve should be legally structured and which department should control the Bitcoin. According to Bloomberg, the dispute is slowing progress on an initiative outlined in President Donald Trump's March 2025 executive order, which envisioned placing the SBR within the Treasury Department while other agencies supported efforts tied to asset seizures. The sticking point is whether Treasury has clear legal authority to directly manage Bitcoin holdings, with the asset's volatility and the boundaries of Treasury's mandate cited as part of the challenge. Bloomberg reported that the Commerce Department has surfaced as a possible alternative lead agency. The Department of Justice is also working with relevant departments to assess legally available paths for establishing and administering the reserve. The governance outcome matters beyond Washington: who leads and what legal framework applies could shape custody standards, decision-making around holding versus selling, and longer-term constraints on how the assets may be used. The administration's broader intent is to treat Bitcoin as a strategic reserve asset rather than primarily as property seized and liquidated through court processes. In comments to Cointelegraph, White House spokesperson Liz Huston said the administration continues to evaluate "the best structure for a Strategic Bitcoin Reserve and US Digital Asset Stockpile," indicating the effort remains in progress. The US already holds a substantial Bitcoin position. The government is reported to control 328,372 Bitcoin worth about $21.1 billion, the largest known nation-state holding, though past sales have occurred through court-ordered processes. On Capitol Hill, lawmakers are pursuing parallel legislation to formalize an accumulation strategy. Proposals cited include the BITCOIN Act and the ARMA Act, introduced in May, which aim to acquire 1 million Bitcoin over five years using budget-neutral approaches. White House crypto adviser Patrick Witt described ARMA as "Version 2" of the BITCOIN Act and said the White House has spent significant time reviewing the legal implications of a Bitcoin reserve. Under ARMA, Bitcoin would be held for at least 20 years unless sold to reduce the national debt, which is near $40 trillion. That design seeks long-term durability while leaving a defined pathway for potential liquidation tied to debt reduction—an area that could be shaped by the same oversight and authority questions now complicating the executive-branch plan. Industry advocates continue to view the SBR concept as supportive for Bitcoin's institutional role. Tim Kotzman, host of the Bitcoin Treasuries Podcast, said the reserve would not only be positive for Bitcoin but would "validate an entirely new category of capital allocation." Cointelegraph has previously reported that 15 nation-states hold Bitcoin, with El Salvador highlighted as the only country that has formally established a Bitcoin reserve and conducts routine purchases. The near-term focus is whether the interagency review resolves the legal authority dispute and whether Congress's ARMA framework advances toward becoming a binding structure that clarifies who controls the reserve in practice.