President Trump has long voiced plans to create a strategic bitcoin reserve. But implementation has hit roadblocks. We break down why.
The Trump administration’s plans for a strategic bitcoin (BTC) reserve have hit bureaucratic hurdles. The Treasury and Commerce Departments are sparring over which agency should manage the reserve and how it should be structured.
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A March 2025 executive order directed that the reserve be housed within the Treasury. But during implementation, questions emerged over whether the department has the legal authority to manage a volatile asset. Commerce is now vying for the role.
The US government currently holds 328,372 BTC worth $21.1B–more than any other nation.
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Battle Between Two Agencies: Who Should Manage the Bitcoin Reserve?
According to Bloomberg, the source of the dispute is whether the Treasury has the legal authority to manage bitcoin, particularly given its volatility. The question of whether the asset can be held “in perpetuity” in government reserves is also under discussion.
White House Press Secretary Liz Houston confirmed the administration is still studying the optimal structure for the reserve and a digital asset vault. The Treasury and Commerce Departments declined to comment.
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The U.S. Legislative Path: ARMA Act and BITCOIN Act
Separately, Congress is developing the ARMA Act, which would codify the reserve into law. The bill calls for acquiring 1 million Bitcoins (BTC) over five years using budget-neutral strategies. The coin would be held for at least 20 years, except for sales to reduce the US national debt.
The ARMA Act is based on the BITCOIN Act, introduced in July 2024 and updated in March 2025. White House Digital Assets Advisor Patrick Witt called ARMA the “version 2.0” of the earlier bill.
In April, Donald Trump promised to make a “major announcement” on next steps for the reserve–but it hasn’t come yet.
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Source: Original Article
