The Trump administration's initiative to establish a U.S. strategic Bitcoin reserve has stalled due to a dispute over the organizational framework between the U.S. Department of Commerce and the U.S. Department of the Treasury, with regulatory authority being the central point of contention.
Donald Trump signed an executive order in March 2025 that explicitly placed the strategic Bitcoin reserve under the jurisdiction of the U.S. Treasury Department, instructing other agencies to assist with asset acquisition. However, citing informed sources, Bloomberg reports that the Treasury's legal authority to manage such a reserve is now being widely questioned, particularly given Bitcoin's highly volatile nature.
Currently, the U.S. Department of Commerce has emerged as a candidate to assume the regulatory role, and the U.S. Department of Justice is also involved in exploring legal pathways. This move signifies a fundamental shift in the status of digital assets and is a key component of Trump's vision to establish a cryptocurrency capital, formerly known as Worldcoin. White House spokesperson Liz Heston confirmed to Cointelegraph that the administration is still evaluating the optimal structure to achieve the president's vision.
Compiled data indicates that the United States currently holds 328,372 Bitcoin, with a total value of $21.1 billion, ranking it first globally among national holders, despite historical sales of portions of its holdings through legal proceedings. To establish a formal system, Congress introduced the BITCOIN Act and the ARMA Act in May, planning to acquire 1 million Bitcoin over five years without increasing budgetary burdens. A key White House advisor, Patrick Witt, described the ARMA Act as an enhanced version of the BITCOIN Act, emphasizing its legal robustness and asset protection capabilities. The legislation stipulates that the reserve must be locked for a minimum of 20 years unless assets are sold to help reduce the $40 trillion national debt.
Despite internal divisions within the executive branch, industry perspectives generally view the plan favorably for its potential to re-evaluate Bitcoin's strategic value. Tim Koetsman, host of the Bitcoin Treasury podcast, noted that a strategic reserve establishes a new paradigm for capital allocation. Globally, while 15 countries hold Bitcoin, El Salvador remains the only nation to have formally established a reserve and continues to increase its holdings.
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