Paraphrased Version:
Bitcoin News: More than 16 months after Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, the U.S. government still has not named a lead agency, disclosed its complete holdings, or purchased any additional Bitcoin. The delay stems from an ongoing jurisdictional dispute between the Treasury Department and the Commerce Department over control of roughly 328,372 BTC, valued at about $25 billion.
The DOJ Office of Legal Counsel is now stepping in to mediate, indicating the disagreement has escalated beyond routine bureaucracy into a more serious legal conflict.
The March 6, 2025 executive order established two frameworks: the Strategic Bitcoin Reserve, made up of seized Bitcoin, and a broader U.S. Digital Asset Stockpile for other confiscated cryptocurrencies.
It also instructed Treasury and Commerce to find budget-neutral ways to increase Bitcoin holdings. However, this requirement—combined with the unresolved leadership issue—has effectively halted any new acquisitions.
Bitcoin News: Why Neither Agency Wants Responsibility
At the heart of the issue is a legal mismatch: existing asset management laws were built for traditional reserves like gold and government securities, not a volatile digital asset like Bitcoin.
Treasury’s authority traditionally covers fiscal instruments, and holding Bitcoin long term instead of selling it as seized property does not clearly fit within its mandate. Meanwhile, Commerce has been suggested as an alternative, based on the idea that Bitcoin represents a strategic technological asset—but that argument would require new legal frameworks.
As reported by Bloomberg and KuCoin, the result is a bureaucratic stalemate where neither department is willing to assume responsibility that may fall outside its legal authority.
The proposed BITCOIN Act, which would formally place the reserve under Treasury with congressional approval, has yet to pass. Without it, agencies remain hesitant to act.
This legislative gap may prove to be a bigger obstacle than the interagency dispute itself. Observers noted in early July that long-term legal clarity for the reserve likely depends on congressional action, regardless of how the current conflict is resolved.
At the same time, broader debates over crypto regulation and authority continue to unfold across Washington.
The executive order originally required agencies to report their holdings within 30 days and for Treasury to submit a comprehensive review 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 agency has been officially appointed.
Scott Bessent’s Mixed Messaging
Treasury Secretary Scott Bessent added to the uncertainty by first stating that the U.S. would not purchase more Bitcoin in the near future, then later suggesting on social media that “budget-neutral” strategies were still under consideration.
This inconsistency highlights a core tension in the executive order: political interest in expanding Bitcoin holdings is limited by fiscal constraints that make doing so difficult without new funding or market-neutral strategies.
White House digital assets adviser Patrick Witt has said an announcement on the reserve structure is “coming soon,” signaling that the initiative is still active.
That outlook aligns with the ongoing mediation process, suggesting efforts are focused on resolution rather than abandonment. Still, repeated delays have frustrated the crypto community, with criticism mounting over the lack of structure and the absence of any new Bitcoin purchases under what was presented as a landmark policy initiative.
One clear directive from the March 2025 order remains unchanged: Bitcoin held by the Treasury must not be sold and should be maintained as a reserve asset. This no-sell policy continues to define the government’s long-term stance, regardless of the ongoing dispute.
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