Trump's Bitcoin Reserve Plan Sparks Legal Authority Controversy

▲ Donald Trump, Bitcoin (BTC), Cryptocurrency/AI-generated image

The U.S. Bitcoin reserve plan has been stalled by a conflict over control between federal departments. U.S. President Donald Trump's key cryptocurrency policy has encountered a reef of legal authority controversy.

According to Cointelegraph, a cryptocurrency specialized media outlet, on July 7 (local time), the U.S. Commerce Department and Treasury Department are at odds over the structure of the U.S. Strategic Bitcoin Reserve (SBR). Which department will assume key oversight authority has also emerged as a point of contention. An executive order signed by Trump in March 2025 placed the reserve within the Treasury Department.

Bloomberg reported that concerns have been raised about whether the Treasury Department has the legal authority to manage Bitcoin (BTC) holdings. Bitcoin's volatility was cited as the background to the controversy. The Commerce Department has emerged as a candidate for supervising the reserve, and the U.S. Department of Justice is also examining legally feasible options.

White House spokesperson Liz Huston stated, "The Trump administration continues to review the optimal structure for a Strategic Bitcoin Reserve and U.S. digital asset stockpiles to realize the President's vision." The U.S. currently holds 328,372 BTC, valued at $21.1 billion. While this is the largest amount among nations, the U.S. government has sold some Bitcoin over the years pursuant to court orders.

In Congress, efforts to legislate a Bitcoin reserve are also ongoing. The BITCOIN Act and ARMA Act, introduced in May, propose acquiring 1 million BTC over five years through a budget-neutral strategy. White House cryptocurrency advisor Patrick Witt described the ARMA Act as "version 2" of the BITCOIN Act. Witt stated, "It's a breakthrough in that it lays a legally solid foundation and properly protects assets."

The ARMA Act stipulates holding Bitcoin for a minimum of 20 years, unless sold to reduce U.S. national debt. U.S. national debt has approached $40 trillion. Currently, 15 countries hold Bitcoin, but El Salvador is the only nation to create an official reserve and regularly purchase it.

[Article Key Summary]

-The U.S. Strategic Bitcoin Reserve has encountered disagreements between the Treasury and Commerce Departments regarding its structure and oversight authority.

-The U.S. holds 328,372 BTC, valued at $21.1 billion, the largest amount among nations.

-The BITCOIN Act and ARMA Act aim to secure 1 million BTC over five years through a budget-neutral strategy.

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