Power Struggle: US Bitcoin Reserve Caught in Treasury-Commerce Tug-of-War!

Sixteen months after President Donald Trump issued an executive order to establish a federal Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile for other cryptocurrencies, the initiative remains stalled. According to recent reports, the White House is still grappling with the fund's structure, primarily due to a dispute between the Treasury and Commerce departments over who should manage the reserve. Trump's executive order, signed in March 2025, mandated budget-neutral methods for acquiring bitcoin, primarily through existing criminal and civil forfeitures, without drawing on taxpayer money.

The plan has encountered several significant obstacles. Both the Treasury and Commerce departments are vying for control of the reserve, and questions have emerged regarding the Treasury's legal authority to oversee such holdings. Confidential sources suggest that housing the reserve within the Commerce Department is among the options under consideration. The Justice Department's Office of Legal Counsel is actively collaborating with both departments to identify legally viable options to fulfill the president's policy objectives. An additional concern revolves around the feasibility of holding bitcoin indefinitely, as the order intended, given the cryptocurrency's inherent price volatility.

White House spokesperson Liz Huston affirmed the administration's commitment to Trump's vision of solidifying America's position as a global leader in cryptocurrency and other advanced technologies. She stated that the administration continues to evaluate the optimal structure for the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile. Despite the administration's chief crypto adviser, Patrick Witt, anticipating a major announcement within weeks back in April, no such development has occurred. Officials acknowledge that a presidential order alone lacks the force of law to complete the project, and congressional legislation has not yet been passed to authorize the reserve.

Recently, President Trump expressed his support for bitcoin, stating he is "a big fan of crypto" and suggesting that bitcoin could eventually be integrated into the newly introduced Trump Accounts, remarking that "something could happen" concerning the asset. He also highlighted the significant number of people using Bitcoin, noting that many don't realize its power.

In an effort to codify the executive order, Senator Cynthia Lummis (R-Wyo.) and Representative Nick Begich (R-Alaska) introduced a bill proposing the acquisition of 1 million bitcoin over five years through budget-neutral strategies. However, this measure has yet to advance, and its prospects could diminish if Republicans lose their House majority in the upcoming midterm elections.

The U.S. government already possesses one of the world's largest bitcoin holdings, estimated at over 300,000 coins, valued at more than $20 billion at current prices, according to Arkham Intelligence. The White House has argued that premature sales of seized bitcoin have cost taxpayers approximately $17 billion over the years, advocating for a single, long-term reserve to provide the country with a strategic advantage. The timing has also presented challenges from an investment perspective; bitcoin reached a record high in October, then declined by nearly 50% from that peak. When Trump initially called for the reserve, bitcoin traded near $93,000, but it now hovers above $64,000, representing a drop of about a third. While the reserve's structure remains unresolved, Trump himself has accumulated a personal bitcoin position exceeding $50 million, as per his recent financial disclosure. This strategic reserve, unlike conventional reserves, is designed for long-term holding rather than being tapped during market emergencies.