Federal Agencies Clash Over Control of US Bitcoin Reserve Worth $21 Billion

TLDR

• The Trump administration’s Strategic Bitcoin Reserve has hit delays 16 months after the original executive order
• Treasury and Commerce departments are both pushing to oversee the reserve
• The Department of Justice is helping determine which agency has legal authority
• Congress has introduced the BITCOIN Act and ARMA Act to formally codify the reserve
• The US currently holds 328,372 Bitcoin worth around $21 billion

The Trump administration’s plan to create a Strategic Bitcoin Reserve is facing delays, with two federal departments disagreeing over who should run it.

President Trump signed an executive order in March 2025 directing the Treasury Department to house the reserve. Other agencies were meant to help build it through asset seizures.

But 16 months later, the reserve still isn’t operational. Bloomberg reported that the Commerce Department has now emerged as a rival contender to oversee the holdings.

The core issue is legal authority. Questions have been raised over whether the Treasury Department can legally manage Bitcoin, partly due to its price volatility.

The Department of Justice is also involved, working with both departments to identify what options are legally available.

The White House has not publicly sided with either agency. Spokesperson Liz Huston said the administration is “continuing to evaluate the best structure” for the reserve.

Congress Pushes to Codify the Reserve

Two pieces of legislation have been introduced to give the reserve a legal foundation. The BITCOIN Act and the ARMA Act, both introduced in May, aim to acquire up to one million Bitcoin over five years using budget-neutral strategies.

White House crypto adviser Patrick Witt described ARMA as “Version 2” of the BITCOIN Act. He said the White House had spent considerable time looking at the legal side of setting up the reserve.

Under ARMA, any Bitcoin held in the reserve must stay for at least 20 years, unless sold to reduce the national debt, which is approaching $40 trillion.

No legislation has yet passed. If Republicans lose their House majority in midterm elections, the chances of a bill becoming law would drop.

What the US Currently Holds

The US government currently holds 328,372 Bitcoin, valued at around $21 billion. That makes it the largest Bitcoin-holding nation-state in the world.

However, portions of those holdings have been sold over the years through court-ordered actions.

When Trump first issued his executive order, Bitcoin was trading around $93,000. It has since dropped to around $64,000, a fall of roughly one third.

Some in the industry still view the reserve positively. Tim Kotzman, host of the Bitcoin Treasuries Podcast, said it validates “an entirely new category of capital allocation.”

Globally, 15 nation-states hold Bitcoin. El Salvador remains the only country to have formally established a Bitcoin reserve with routine purchases.

Trump’s own personal Bitcoin holdings exceed $50 million, according to his most recent financial disclosure.

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