US Strategic Bitcoin Reserve Faces Interagency Roadblock

The Trump administration’s push to establish a US Strategic Bitcoin Reserve has reportedly hit a roadblock, as the Commerce and Treasury departments are at odds over how the reserve should be structured and which agency should have primary oversight of the holdings.

US President Donald Trump’s March 2025 executive order called for the SBR to be housed inside the Treasury Department, while other agencies would assist with asset seizures to build the reserve.

However, concerns have emerged over whether the Treasury has the legal authority to manage the Bitcoin (BTC) holdings, partly because of its volatility, Bloomberg reported Monday, citing people familiar with the matter.

The Commerce Department has emerged as a contender to oversee the reserve, they said. The Department of Justice is also reportedly working with the departments to determine legally available options, they added.

The Bitcoin reserve is a key part of Trump’s plan to make the US the “crypto capital of the world,” marking a major shift in the government's approach to digital assets by positioning Bitcoin as a strategic reserve asset rather than a seized commodity.

“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.

The US currently holds 328,372 Bitcoin worth $21.1 billion — the most of any nation-state — but has sold portions through court-ordered actions over the years.

Senators look to codify the Bitcoin reserve

Efforts have been made to codify the Bitcoin reserve in Congress through the BITCOIN Act and ARMA Act, introduced in May, which seek to acquire 1 million Bitcoin over five years using budget-neutral strategies.

One of the White House’s top crypto advisers, Patrick Witt, described ARMA as “Version 2” of the BITCOIN Act and said the White House had spent significant time examining the legal implications of creating 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 ARMA, Bitcoin must be held for at least 20 years unless it is sold to reduce America’s national debt, which is nearing $40 trillion.

Bitcoin reserve developments viewed bullishly

Despite the interagency issues, many industry advocates say the SBR could strengthen the case for Bitcoin 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.”

While 15 nation-states hold Bitcoin, El Salvador is the only country that has formally established a Bitcoin reserve and is making routine purchases.