President Donald Trump’s ambitious Strategic Bitcoin Reserve, established via Executive Order 14233 in March 2025, is facing significant delays as federal agencies grapple with unresolved legal questions and a turf war over control. The initiative aims to bolster the United States’ position in the cryptocurrency sector, but more than a year later, the reserve lacks a clear operating structure.
At the heart of the impasse is a dispute between the Treasury Department and the Commerce Department over which agency should manage the reserve. The original plan placed the reserve under Treasury, which already oversees numerous federal assets. However, officials have raised doubts about Treasury’s legal authority to handle a large Bitcoin reserve, prompting the Commerce Department to emerge as a potential alternative. The Justice Department’s Office of Legal Counsel is now mediating, working with both agencies to identify “legally available options” for the reserve’s creation.
Another critical issue is whether the government can hold seized Bitcoin indefinitely. The executive order prohibits the sale of Bitcoin placed into the reserve, with the White House arguing that past early sales cost taxpayers approximately $17 billion. Yet Bitcoin’s price volatility introduces legal and practical challenges, requiring a framework that allows the government to hold the asset through major price swings without creating budget pressure.
Congress is also stepping in to provide a clearer legal foundation. The BITCOIN Act, introduced by Senator Cynthia Lummis and Representative Nick Begich in March 2025, proposes buying up to 1 million Bitcoin over five years through budget-neutral methods. This bill has been tied to broader market structure legislation, the Clarity Act, which has faced delays over stablecoin and decentralized finance regulations. A second bill, the American Reserve Modernization Act, introduced in May 2026, would place the Bitcoin reserve directly under the Treasury Department and create a separate stockpile for other digital assets.
According to Arkham Intelligence, the federal government currently holds more than $20 billion in Bitcoin, making the United States one of the largest known sovereign Bitcoin holders. Yet the reserve still lacks a final legal framework, a named lead agency, and a clear long-term management plan. White House spokesperson Liz Huston stated that the administration continues to evaluate the best structure for the reserve and the separate US Digital Asset Stockpile, reflecting the ongoing uncertainty.