Rewritten Version:

Bitcoin News: More than 16 months after Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, the U.S. government has yet to appoint a managing agency, disclose its full holdings, or acquire 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—worth about $25 billion.

The DOJ Office of Legal Counsel is now mediating the conflict, indicating the issue has moved beyond standard bureaucratic disagreements into a more complex legal battle.

The March 6, 2025 executive order established two frameworks: a Strategic Bitcoin Reserve made up of seized BTC, and a broader U.S. Digital Asset Stockpile for other confiscated cryptocurrencies.

It also tasked Treasury and Commerce with identifying budget-neutral methods to expand Bitcoin holdings. However, this requirement—combined with the unresolved oversight question—has effectively frozen any new purchases.

Why neither side is taking control

At the core of the impasse is a legal disconnect. Federal asset management laws were designed for traditional reserves like gold and government securities—not for a volatile digital asset such as Bitcoin.

Treasury’s authority is centered on fiscal tools, making long-term Bitcoin custody an awkward fit, especially since seized assets are typically sold. Meanwhile, Commerce has been considered as an alternative on the basis that Bitcoin represents a strategic technology asset, but that interpretation would require new legal authority.

According to Bloomberg and KuCoin, this has created a bureaucratic vacuum where neither department is willing to take responsibility without clear legal justification.

The proposed BITCOIN Act—which would formally place the reserve under Treasury with congressional approval—has not yet been enacted. Without it, agencies remain hesitant to act.

This legislative gap may ultimately be a bigger hurdle than the interagency conflict itself. Analysts noted in early July that the reserve’s long-term legal standing will likely require congressional backing, regardless of how the current dispute is resolved.

Meanwhile, broader debates over crypto regulation and authority continue across Washington.

The original executive order required agencies to report their holdings within 30 days and directed Treasury to deliver a comprehensive review within 60 days. Both deadlines passed without public disclosure—the latter expiring on May 5, 2025. As of July 2026, no report has been released and no agency has been formally designated.

Conflicting signals from Treasury

Treasury Secretary Scott Bessent added to the uncertainty by initially stating that the U.S. would not purchase more Bitcoin in the near term, before later suggesting that “budget-neutral” strategies are still being explored.

This inconsistency reflects a key tension in the policy: while there is political interest in expanding Bitcoin holdings, fiscal constraints make it difficult without new funding or market-neutral approaches.

White House digital assets adviser Patrick Witt has said an announcement on the reserve’s structure is “coming soon,” suggesting the initiative remains active.

That outlook aligns with the ongoing mediation process, indicating efforts are focused on resolving the dispute rather than abandoning the plan. However, repeated delays have fueled frustration within the crypto community, particularly over the lack of a clear framework and the absence of any new Bitcoin acquisitions.

One element of the policy remains unchanged: Bitcoin held by the Treasury must not be sold and should be maintained as a reserve asset. This no-sell directive continues to define the government’s long-term stance, regardless of the unresolved oversight battle.