Rewritten Version:
Bitcoin News: More than 16 months after Donald Trump issued an executive order to create a Strategic Bitcoin Reserve, the U.S. government has yet to appoint a managing authority, disclose its full crypto holdings, or acquire any additional Bitcoin. The delay is largely due to an ongoing power struggle between the Treasury Department and the Commerce Department over who should oversee approximately 328,372 BTC—valued at around $25 billion.
The DOJ Office of Legal Counsel has stepped in to mediate, signaling that the disagreement has escalated beyond routine administrative friction into a more serious legal dispute.
The March 6, 2025 executive order established two separate frameworks: a Strategic Bitcoin Reserve composed of seized BTC, and a broader U.S. Digital Asset Stockpile for other confiscated cryptocurrencies.
It also instructed both departments to explore budget-neutral strategies for increasing Bitcoin reserves. However, this requirement—combined with the unresolved oversight issue—has effectively stalled any new purchases.
Why neither agency is stepping up
At the core of the impasse is a legal mismatch. Existing federal asset management laws were designed for traditional reserves like gold and government securities—not highly volatile digital assets like Bitcoin.
The Treasury’s mandate is centered on fiscal instruments, making long-term Bitcoin custody an awkward fit, especially since seized assets are typically liquidated. Meanwhile, assigning responsibility to Commerce has been suggested on the basis that Bitcoin represents a strategic technology asset—but that approach would require new legal authority.
According to reports from Bloomberg and KuCoin, this has created a bureaucratic gray area where neither department is willing to assume control without clear legal backing.
The proposed BITCOIN Act—which would formally authorize the reserve under Treasury—has not yet been passed. In its absence, agencies remain reluctant to act.
This legislative uncertainty may ultimately be a larger barrier than the interagency conflict itself. Analysts noted in early July that congressional approval will likely be necessary to ensure the reserve’s long-term legal foundation, regardless of how the current dispute is resolved.
Meanwhile, broader questions about crypto policy authority continue to unfold across Washington.
The original executive order required agencies to disclose their holdings within 30 days and tasked Treasury with delivering a full legal and operational report within 60 days. Both deadlines passed without public updates—the latter expiring on May 5, 2025. As of July 2026, no report has been released and no lead agency has been officially named.
Conflicting signals from Treasury
Treasury Secretary Scott Bessent further muddied the outlook by initially stating that the U.S. would not purchase more Bitcoin in the near term, before later indicating on social media that “budget-neutral” options are still being explored.
This contradiction underscores a central tension in the policy: while there is political interest in expanding Bitcoin holdings, fiscal constraints make it difficult without either new funding or creative, market-neutral mechanisms.
White House digital assets adviser Patrick Witt has said an announcement on the reserve’s structure is “coming soon,” suggesting the initiative remains active.
That aligns with the ongoing mediation process, indicating efforts are focused on resolving the dispute rather than abandoning the plan. However, repeated delays have fueled frustration within the crypto community, with critics pointing to the lack of structure and the absence of any new Bitcoin acquisitions.
One element of the policy remains clear: Bitcoin held by the Treasury is not to be sold and must be maintained as a reserve asset. This no-sell directive continues to define the government’s long-term approach, regardless of the unresolved oversight battle.
