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Ahmed Barakat
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Bitcoin News: More than 16 months after President Trump signed the executive order establishing a Strategic Bitcoin Reserve, the U.S. government has not formally designated a managing agency, has not publicly disclosed its full holdings, and has not acquired a single satoshi of new Bitcoin, the result of an unresolved turf war between the Treasury Department and the Commerce Department over which agency should control roughly 328,372 BTC valued at approximately $25 billion.
The DOJ Office of Legal Counsel is now mediating between the two departments, a development that signals the dispute has moved beyond bureaucratic friction into genuinely contested legal territory.
The March 6, 2025 executive order created two separate structures: the Strategic Bitcoin Reserve, composed of forfeited Bitcoin the government acquired through seizures, and a broader U.S. Digital Asset Stockpile for other confiscated crypto assets.
The order also directed Treasury and Commerce to develop budget-neutral methods for expanding Bitcoin holdings, a constraint that, combined with the unresolved oversight question, has effectively frozen any new accumulation.
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Bitcoin News: Why Neither Agency Wants to Own This
The core legal problem is that existing government asset management statutes were designed around gold, foreign exchange reserves, and Treasuries, not a volatile digital bearer asset.
Treasury’s traditional authority centers on fiscal instruments; holding Bitcoin as a long-term strategic asset, rather than liquidating it as typical seized property, sits awkwardly with that mandate. Commerce has been floated as an alternative home on the theory that Bitcoin represents a strategic technology and economic competitiveness asset, but that framing requires its own legal scaffolding.
The result, as reported by Bloomberg and KuCoin, is a bureaucratic vacuum where neither side is willing to formally accept responsibility that may not legally be theirs.
The BITCOIN Act, which would codify the Strategic Bitcoin Reserve under the Treasury with explicit congressional authorization, has been proposed but not enacted, and without it, agencies are reluctant to move.
That legislative gap may ultimately prove the harder obstacle than the interagency dispute itself, a point raised in early July that the reserve’s legal durability likely requires congressional action regardless of how the OLC resolves the current standoff.
Broader questions about legislative authority over crypto policy are playing out across multiple fronts in Washington simultaneously.
The original executive order set a 30-day deadline for agencies to report holdings and a 60-day deadline for Treasury to deliver a full legal, custodial, and legislative evaluation. Both passed without public disclosure; the 60-day deadline expired May 5, 2025. As of early July 2026, no report has been delivered, and no agency has been formally designated.
Scott Bessent’s Contradictory Signals
Scott Bessent, the Treasury Secretary, created additional confusion when he said publicly that the U.S. “won’t be buying” additional Bitcoin in the near term, then partially walked that back on social media by saying Treasury is exploring “budget-neutral pathways” for expanding holdings.
The contradiction matters because it reflects the same tension embedded in the executive order itself: the political appetite for accumulation is constrained by a fiscal rule that makes accumulation nearly impossible without either a market-neutral mechanism or an explicit congressional appropriation.
White House digital assets adviser Patrick Witt said an announcement on the reserve structure is “coming soon,” which suggests the administration still views the project as active rather than shelved.
That framing aligns with the OLC mediation, a resolution process, not an abandonment. But “coming soon” has been the operative phrase for months, and the crypto community’s frustration with the absence of a concrete framework is well documented. CoinTribune noted growing criticism centered on the lack of structure and the fact that no new Bitcoin has been acquired under what was billed as a historic Trump crypto policy initiative.
The March 2025 order did include one unambiguous directive: Treasury-controlled Bitcoin “shall not be sold and shall be maintained as reserve assets.” That no-sell clause is the clearest public statement on the government’s intended long-term posture toward its US government Bitcoin holdings, and it remains in force regardless of the oversight dispute.
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