US Bitcoin Reserve Hits Snag Over Interagency Disputes

The US Bitcoin reserve has hit a roadblock due to disagreements between the Commerce and Treasury departments over its structure and oversight. The Trump administration's executive order in March 2025 called for the Strategic Bitcoin Reserve (SBR) to be housed within the Treasury Department, with other agencies assisting with asset seizures.

However, concerns have emerged about whether the Treasury has the legal authority to manage the volatile Bitcoin holdings, according to people familiar with the matter. The Commerce Department is now emerging as a contender to oversee the reserve, and 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, making it the largest holder among nation-states. Efforts have been made in Congress to codify the Bitcoin reserve through the BITCOIN Act and ARMA Act, which aim to acquire 1 million Bitcoin over five years using budget-neutral strategies.

Despite the interagency issues, industry advocates see the SBR as a positive development for Bitcoin's potential as a strategic reserve asset. Patrick Witt, one of the White House's top crypto advisers, described ARMA as 'Version 2' of the BITCOIN Act and said the White House had spent significant time examining the legal implications of creating a Bitcoin reserve.