Trump Ordered A Strategic Bitcoin Reserve — Now 2 Departments Can’t Agree On Who’s In Charge

The Trump administration’s plan to establish a Strategic Bitcoin Reserve is running into a problem that has nothing to do with Bitcoin (BTC) itself. Two government departments are locked in a dispute over who legally controls the reserve, and the internal standoff is complicating what was supposed to be a flagship piece of the administration’s pro-crypto agenda.

The Bitcoin Reserve Has No Home Yet 

Bloomberg reported Monday that concerns have emerged within the administration about whether the Treasury Department — where Trump originally intended to house the reserve — has the legal authority to manage a long-term cryptocurrency holding. 

The Bitcoin was meant to come from assets seized by various parts of the federal government, along with potential new purchases. But whether the Treasury can hold that crypto indefinitely, given how volatile the asset is, has become a central legal question with no clear answer yet.

Multiple parts of the administration are reportedly involved in trying to find a structure that actually works. One option being discussed is moving the reserve into the Commerce Department instead, according to people familiar with the matter cited by Blomberg. 

The Justice Department’s Office of Legal Counsel confirmed it is actively working with both Treasury and Commerce to determine what legal options are available to carry out the president’s policy. White House spokeswoman Liz Huston said in a statement Monday: 

President Trump campaigned on a vision of cementing America as the global capital of cryptocurrency and other cutting-edge technologies. To deliver on the president’s vision, the Trump administration continues to evaluate the best structure for a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile.

ETH, XRP And the Rest Go In A Different Pile 

Beyond the reserve, a separate Digital Asset Stockpile is also planned to hold everything else the government has seized — including Ethereum (ETH), XRP, and other altcoins — while the Bitcoin reserve would be held exclusively in BTC.

The Trump administration has argued publicly that premature sales of Bitcoin over the years have cost American taxpayers roughly $17 billion, and that consolidating seized holdings into a single indefinitely held reserve would give the country a meaningful strategic advantage. 

Trump framed his intentions in a fact sheet attached to his March 2025 executive order. “I am very positive and open minded to cryptocurrency companies, and all things related to this new and burgeoning industry,” he wrote. “Our country must be the leader in the field.”

Congress is moving on a parallel track, social media reports disclosed Monday. Legislators are reportedly working on a bill called the American Reserves Modernization Act, which would direct the Treasury to actively purchase one million Bitcoin over a five-year period. 

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