Bloomberg reported on July 6 that the Trump administration’s effort to establish a Strategic Bitcoin Reserve is being slowed by a dispute between federal agencies over which department should control it, with unresolved legal questions adding further delays to the reserve’s operational setup.
The report said at least two government departments are seeking authority over the reserve, which was originally designed to sit inside the U.S. Treasury Department and hold bitcoin obtained through federal asset seizures. The turf battle highlights the complexity of folding a novel digital asset into the existing federal bureaucracy. For related coverage, see 15-Year-Dormant Bitcoin Wallet Becomes Active Again.
Executive Order Set the Framework, but Left Key Questions Open
President Donald Trump signed Executive Order 14233 on March 6, 2025, directing the Secretary of the Treasury to establish the office that would administer and control the reserve’s custodial accounts. The order also created a separate U.S. Digital Asset Stockpile for non-bitcoin digital assets. For related coverage, see Former Tether CIO Seeks Stake Sale in Stablecoin Issuer.
The executive order gave each federal agency 30 days to review its authority to transfer government-held bitcoin and to provide a full accounting of its digital asset holdings. Treasury was separately given 60 days to deliver a legal and investment evaluation.
A White House digital-assets report published in July 2025 stated that the reserve would be administered by Treasury, while both Treasury and the Commerce Department would study custody arrangements and operational next steps. The order also authorized the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring additional bitcoin.
That dual mandate appears to be part of the problem. By giving both departments a role in custody and acquisition planning, the executive order created overlapping jurisdiction that neither agency has fully resolved more than a year later.
What Agency Control Means for Reserve Operations
The question of which department controls the reserve is not merely bureaucratic. Custody authority determines who holds the private keys, who sets security protocols, and who is accountable if bitcoin is lost or mishandled.
Oversight responsibility also determines how the reserve interacts with other federal operations. Treasury already manages traditional reserve assets like gold and foreign currency. Commerce, by contrast, has a broader mandate around economic competitiveness, a framing that could shape whether the reserve is treated as a fiscal tool or an industrial-policy instrument.
White House crypto adviser Patrick Witt has acknowledged the challenge, describing “novel legal questions that we just need to get resolved.” A White House spokesperson told CoinDesk on July 6 that the administration “continues to evaluate the best structure” for both the Strategic Bitcoin Reserve and the Digital Asset Stockpile.
“The Trump administration continues to evaluate the best structure.”
— Liz Huston, White House spokesperson, via CoinDesk
According to an estimate cited by CoinDesk, the U.S. government holds more than 300,000 BTC, worth roughly $21 billion at recent prices. That figure has not been officially confirmed by the administration, which still has not publicly disclosed the exact amount of bitcoin held across federal agencies.
Why the Governance Debate Matters for Bitcoin Policy
The interagency dispute signals that the Strategic Bitcoin Reserve remains a work in progress, more than 16 months after the executive order was signed. No public interagency memo or final White House designation has been released naming the reserve’s permanent institutional home.
For the broader bitcoin market, the delay adds a layer of policy uncertainty. Bitcoin was trading around $63,477 at research time, while the crypto Fear & Greed Index sat at 27, firmly in “Fear” territory.
The reserve debate also intersects with growing institutional interest in bitcoin. BlackRock recently filed for a Bitcoin premium income ETF, and the U.S.-Russia duopoly in global bitcoin mining continues to underscore the asset’s geopolitical significance. Meanwhile, major AI companies are signing long-term leases with bitcoin miners for energy infrastructure, further blurring the lines between bitcoin mining and broader industrial policy.
Bloomberg’s reporting makes clear that the administration views the reserve as a serious policy commitment, not a rhetorical exercise. But until the governance question is settled, the reserve cannot become fully operational, and the administration’s stated goal of never selling government-held bitcoin remains a pledge without a clear institutional custodian to enforce it.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
