Trump’s Bitcoin Reserve Plan Stalls Amid Agency Control Dispute

Background on the Reserve Initiative

The administration advanced plans for a Strategic Bitcoin Reserve through an executive order issued in March 2025. That order directed the Treasury Department to set up a dedicated office for managing Bitcoin acquired mainly through criminal and civil forfeitures. The goal centered on treating these assets as long-term holdings rather than items for routine sale.

Government data indicates the United States controls around 328,000 Bitcoin, valued near $21 billion. This positions the country as the largest known nation-state holder of the asset. Previous sales of seized Bitcoin have drawn criticism for missing potential gains, which supports arguments for structured reserve management.

Interagency Tensions Emerge

Recent reports point to ongoing discussions between the Treasury and Commerce departments over which should lead the reserve. Questions center on whether Treasury possesses clear statutory authority to manage a volatile asset like Bitcoin in this capacity. As a result, Commerce has surfaced as a potential alternative.

The Department of Justice’s Office of Legal Counsel is engaged with both agencies to establish a compliant framework. This process examines custody arrangements, audit requirements, and overall operational structure. The review keeps the initiative active while details remain unresolved.

Legislative Efforts in Congress

Lawmakers have introduced bills to support and expand the reserve concept. The BITCOIN Act and American Reserve Modernization Act (ARMA) propose acquiring up to one million Bitcoin over five years through budget-neutral methods. ARMA includes a 20-year holding period for acquired Bitcoin, with limited exceptions tied to national debt reduction.

White House crypto adviser Patrick Witt previously described progress on legal and custody aspects as a breakthrough, noting work toward safeguards for the assets. These legislative paths aim to provide permanence beyond executive action.

Current Status and Implications

The plan has not been abandoned. Officials continue internal evaluations to determine the most suitable structure. This phase addresses legal questions that could shape how the reserve operates moving forward, including management protocols and compliance measures.

Industry participants have noted the initiative’s potential to affirm Bitcoin’s role in public finance strategies. One commentator described it as validating a new form of capital allocation at the nation-state level.