US Bitcoin Reserve Faces Legal Hurdles as Federal Agencies Disagree
Vexoda Newsroom
The US Strategic Bitcoin Reserve has encountered legal challenges with the Commerce and Treasury departments at odds over its structure. This standoff threatens to delay Trump's vision of making the U
In what appears to be a significant setback for President Donald Trump’s ambitious plan, federal agencies in the United States are currently engaged in heated debates regarding the establishment of a Strategic Bitcoin Reserve (SBR). The Commerce and Treasury departments have reportedly clashed over how the reserve should be structured and who should oversee its management.
The issue stems from an executive order issued by President Trump in March 2025, which instructed that the SBR be housed within the Treasury Department. However, concerns have emerged about whether the Treasury has sufficient legal authority to manage Bitcoin (BTC) holdings due to their volatility. The Commerce Department is now seen as a potential alternative overseer.
This disagreement comes at a critical juncture for US crypto policy. Trump’s administration aimed to position Bitcoin as a strategic reserve asset, marking a significant shift towards recognizing the value of digital assets in government strategy. The White House spokesperson Liz Huston acknowledged ongoing evaluation efforts but did not provide specific details on the current status.
Despite these legal challenges, there are efforts underway to codify the SBR through legislative means. Bills like the BITCOIN Act and ARMA Act have been introduced in Congress, aiming to acquire 1 million Bitcoin over five years using budget-neutral strategies. These bills reflect industry support for a robust crypto policy framework.
Industry advocates argue that establishing such a reserve could bolster Bitcoin’s status as a strategic asset. Tim Kotzman of the Bitcoin Treasuries Podcast sees this development as validating an entirely new category of capital allocation, with public companies and nation-states increasingly considering similar moves.
While 15 nations hold Bitcoin, only El Salvador has officially established a Bitcoin reserve for routine purchases. The US’s potential SBR could set a precedent, influencing other countries to adopt similar measures in the future.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.