.png){kind=logo}
Trump’s Strategic Bitcoin Reserve is facing delays as federal officials work through legal and control issues. The program was created through Executive Order 14233 in March 2025, with the goal of placing the United States in a stronger position within the crypto sector.
The reserve would mainly hold Bitcoin taken by the government through criminal and civil forfeiture cases. Federal agencies were also told to report their digital asset holdings. However, the structure remains unsettled, with officials still reviewing whether the Treasury Department can manage the reserve and whether seized Bitcoin can be held for the long term.
The main issue is which department should run the Strategic Bitcoin Reserve. The original plan placed the reserve inside the Treasury Department, which already manages many federal assets. However, people familiar with the matter said officials raised doubts about whether the Treasury has the legal authority to manage a large Bitcoin reserve.
As a result, the Commerce Department has emerged as another possible home for the reserve. Commerce handles economic and trade policy, which gives it a different role from Treasury. However, no final decision has been announced. This has left the reserve without a clear operating structure more than a year after the executive order.
The Justice Department’s Office of Legal Counsel is now working with both departments. Its role is to review what the executive branch can legally do. The DOJ said it is working with Treasury and Commerce to find ‘legally available options’ for creating the reserve.
That wording shows the administration has not yet settled the legal path. Treasury and Commerce did not comment publicly on the matter. Meanwhile, the White House said the administration is still reviewing the best structure for the Bitcoin reserve and the separate US Digital Asset Stockpile.
White House spokesperson Liz Huston said President Trump campaigned on making America a global capital for cryptocurrency and other new technologies. However, her statement also showed that the reserve’s structure remains under review.
“To deliver on the president’s vision, the Trump administration continues to evaluate the best structure for a Strategic Bitcoin Reserve and US Digital Asset Stockpile,” Huston said.
The Justice Department also used cautious language in its statement. It said its Office of Legal Counsel is working with both Treasury and Commerce to determine “legally available options” for the reserve. That phrase reflects the legal doubts still surrounding the project.
Another open question is whether the government can hold Bitcoin permanently. The executive order says seized Bitcoin placed into the reserve should not be sold. The White House has argued that past early sales of Bitcoin cost taxpayers about $17 billion.
Still, Bitcoin’s price volatility has created legal and practical questions. The government would need a structure that allows it to hold the asset through large price changes. Officials are also reviewing how such holdings can be managed without creating budget pressure.
Congress is also working on legislation to give the reserve a stronger legal base. Senator Cynthia Lummis and Representative Nick Begich introduced the BITCOIN Act in March 2025. The bill proposed buying up to 1 million Bitcoin over five years through budget-neutral methods.
That bill has not moved quickly. It became linked to wider market structure legislation known as the Clarity Act. Lawmakers have faced delays over stablecoin interest rules and decentralized finance regulation, slowing the broader process.
A second bill, the American Reserve Modernization Act, was introduced in May 2026 by Begich and Representative Jared Golden. This bill would place the Strategic Bitcoin Reserve directly inside the Treasury Department. It would also create a separate stockpile for other digital assets.
For now, the federal government still holds more than $20 billion in Bitcoin, according to Arkham Intelligence estimates cited in reports. That makes the United States one of the largest known sovereign Bitcoin holders. However, the reserve still lacks a final legal framework, a named lead agency and a clear plan for long-term management.
Also Read: Galaxy Cuts CLARITY Act Passage Odds to 50% Over Senate Scheduling Delays
