US Agency Turf War Stalls Trump's Strategic Bitcoin Reserve Plan
Treasury and Commerce departments are locked in a legal dispute over who controls Trump's planned Bitcoin reserve, even as BTC climbs Monday.
A bureaucratic standoff between two of Washington's most powerful economic agencies is threatening to derail one of President Donald Trump's signature crypto initiatives. The Treasury and Commerce departments are both vying for control of the planned Strategic Bitcoin Reserve, with unresolved questions over legal authority stalling the policy that Trump ordered into existence last year, according to Bloomberg.
Trump's original directive envisioned Treasury holding Bitcoin acquired through federal asset seizures — and potentially future purchases — but officials grew concerned the department may lack the legal standing to hold a volatile digital asset indefinitely. Commerce has since emerged as an alternative host, though no resolution has been reached. The Justice Department's Office of Legal Counsel is now actively working with both agencies to identify a legally viable structure that could move the plan forward.
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Despite the Washington wrangling, Bitcoin rose Monday — a move analysts found notable given the headwinds. Market participants appeared unfazed not only by the reserve's uncertain fate but also by a high-profile sell-off: Michael Saylor's firm Strategy disclosed it sold 3,588 Bitcoin between June 29 and July 5. That Bitcoin absorbed that selling pressure and still gained ground signals traders are keying off broader momentum rather than near-term policy noise.
The stakes of the legal impasse extend well beyond Washington's hallways. The federal government holds more than $20 billion in Bitcoin across various agencies, making it one of the largest Bitcoin holders in the world. How — and where — that stockpile is eventually managed could have meaningful implications for market supply dynamics. For now, Bitcoin remains down nearly 50% from its all-time high set in October, leaving plenty of room for the reserve debate to resurface as a price catalyst if and when a legal framework is finalized.
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