Trump's Strategic Bitcoin Reserve remains unbuilt more than a year after his executive order, as the Treasury and Commerce departments fight over which one should manage the government's holdings. A separate legal review is examining whether Washington can hold the coins indefinitely given their volatility.
The U.S. Strategic Bitcoin Reserve has stalled, and two cabinet departments are now fighting over who should run it. Conversations that once placed the reserve inside the Treasury Department have pivoted toward the Commerce Department, according to Bloomberg, citing people familiar with the discussions.
The dispute is more than bureaucratic pride. A central concern is whether the Treasury Department is legally able to manage the crypto holdings at all, a question that has landed with the Justice Department's Office of Legal Counsel. The White House says the administration remains committed to the project and continues to weigh the best structure for the reserve.
What the lawyers are untangling
Beyond which department holds the keys, officials are reviewing whether the federal government can legally hold bitcoin for an extended period. Trump's executive order directs the reserve to retain its bitcoin rather than sell it, but because the asset's price can rise and fall sharply, officials are examining whether keeping it indefinitely could create legal or operational problems.
The stakes are large. The government holds more than 300,000 BTC, worth roughly $21 billion at current prices, accumulated mostly through criminal and civil asset seizures. Trump's March 2025 executive order capitalized the reserve with those forfeited coins, avoiding any taxpayer cost but leaving custody and accounting for the agencies to work out.
A signature issue stuck in limbo
That work continues under White House chief crypto adviser Patrick Witt, who has signaled the structure is still under active review. Lawmakers including Sen. Cynthia Lummis and Rep. Nick Begich have sponsored legislation to codify the reserve, arguing that an executive order alone can be undone by a future president.
The delay is an awkward look for an administration that has made digital assets a signature issue. Trump said on Monday that China would seize the crypto lead if the U.S. stepped back from the industry.
Source: Bitcoin.com News
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