US Bitcoin Reserve Stalls as Treasury, Commerce Clash
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- Commerce and Treasury departments are at odds over how to structure the US Strategic Bitcoin Reserve and which agency should hold primary oversight of the nation's crypto holdings, Bloomberg reported Monday.
- President Trump's March 2025 executive order directed that the SBR be housed inside Treasury, but concerns have emerged over whether Treasury has the legal authority to manage Bitcoin given its volatility.
- The Commerce Department has emerged as a contender to oversee the reserve, while the Department of Justice is working with both departments to determine legally available options.
- The US currently holds 328,372 Bitcoin worth $21.1 billion — the most of any nation-state — though portions have been sold through court-ordered actions over the years.
- Senators have introduced the BITCOIN Act and ARMA Act in May to codify the reserve, seeking to acquire 1 million BTC over five years using budget-neutral strategies.
- Under the ARMA Act, Bitcoin must be held for at least 20 years unless sold to reduce America's national debt, which is nearing $40 trillion.
- White House crypto adviser Patrick Witt described ARMA as "Version 2" of the BITCOIN Act, while spokesperson Liz Huston said the administration "continues to evaluate the best structure" for the reserve.
Why it matters: The world's largest state-held Bitcoin stash — 328,372 BTC worth $21.1 billion — is caught in an interagency turf war that could force a structural redesign of the reserve before Congress codifies it through the BITCOIN or ARMA Acts, delaying Trump's push to position Bitcoin as a strategic reserve asset.
