U.S. strategic Bitcoin reserve faces oversight dispute in Trump administration

Traders Union
All News
Crypto
US Strategic Bitcoin Reserve dispute

Highlights

The Commerce and Treasury departments are disputing the primary oversight and legality of U.S. Bitcoin reserves, ordered by Trump to reside under Treasury from March 2025.
The U.S. government holds 328,372 Bitcoin valued at about $21.1 billion, leading all nation-states, with portions periodically sold via court order.
The BITCOIN Act and ARMA Act, introduced in May, propose a statute for acquiring up to 1 million Bitcoin over five years with 20-year minimum holding periods unless sold to reduce national debt nearing $40 trillion.

Agency structure and legal questions

As first reported by Bloomberg, the Commerce and Treasury departments are at odds over how the reserve should be structured and which agency should take primary oversight of the Bitcoin holdings.

President Donald Trump’s March 2025 order calls for the reserve to be housed within the Treasury Department, with other agencies helping to build the stockpile through asset seizures. Concerns have since emerged over whether Treasury has the legal authority to manage Bitcoin because of the asset’s volatility, while the Department of Justice is also working with the agencies on legally available options.

The reserve is a central element of Trump’s effort to position the U.S. as the “crypto capital of the world,” shifting the federal approach to digital assets by treating Bitcoin as a strategic reserve asset rather than only as seized property. White House spokesperson Liz Huston says the administration continues to evaluate the best structure for both a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

Congressional push and market implications

The U.S. currently holds 328,372 Bitcoin worth about $21.1 billion, more than any other nation-state, although portions of those holdings have been sold over time through court-ordered actions.

Lawmakers are also trying to put the reserve framework into statute through the BITCOIN Act and the ARMA Act, both introduced in May. The proposals seek to acquire 1 million Bitcoin over five years using budget-neutral strategies, and White House crypto adviser Patrick Witt has described ARMA as “Version 2” of the BITCOIN Act after legal review by the administration.

Under ARMA, Bitcoin must be held for at least 20 years unless it is sold to reduce the U.S. national debt, which is nearing $40 trillion. Industry supporters argue that, despite the agency dispute, the reserve strengthens the case for Bitcoin as a strategic reserve asset, with El Salvador remaining the only country so far to have formally established a Bitcoin reserve and to keep buying routinely.

In our earlier article on Strategy (MSTR), we covered the company’s sale of 3,588 Bitcoin to boost liquidity and support preferred dividend payments, alongside a new BTC monetization program. We also noted how these balance-sheet moves and related Bitcoin flows can influence market sentiment, with traders watching key technical levels as MSTR consolidates after a sharp longer-term drawdown.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.