According to a Bloomberg report on July 6, the U.S. Bitcoin strategic reserve plan is at an impasse, with the core obstacles being a management power struggle between the Treasury Department and the Commerce Department, as well as questions over legal authorization; the Justice Department is studying feasible solutions. Sources familiar with the matter revealed that Trump originally planned to store the assets at the Treasury Department but faced internal opposition from officials. It has been more than 16 months since Trump signed an executive order in 2025 requiring all departments to refrain from selling seized Bitcoin, and progress remains in the study phase.
Treasury and Commerce Departments Battle for Management Control, Justice Department Studying Plan
According to Bloomberg citing people familiar with the matter, the two main reasons for the stalemate in the U.S. Bitcoin strategic reserve are: first, internal competition between the Treasury Department and the Commerce Department over management control; second, questions about whether the Treasury Department has the legal authority.
Currently, the Justice Department is studying possible solutions. Although Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have both been authorized to develop budget-neutral Bitcoin purchasing strategies, policy implementation remains uncertain amid the management rivalry between the two departments. White House spokesperson Liz Huston stated that the government will continue to evaluate the best structure for the reserve to realize the vision of establishing a digital asset vault, but did not provide a specific timeline.
Over 16 Months Since Executive Order Signed, Witt’s April Promise of “Big News in Weeks” Unfulfilled
According to reports, Trump signed an executive order in 2025 requiring all relevant departments to refrain from selling Bitcoin currently seized by the government, and assigned the Treasury Department and Commerce Department to develop a purchasing plan that does not involve taxpayer budgets. As of July 2026, more than 16 months after the executive order was signed, progress remains in the study phase.
White House crypto advisor Patrick Witt, speaking at a Bitcoin conference in April this year, previewed that “a major announcement regarding the Bitcoin reserve would come within weeks,” but the promise was not fulfilled. Witt also acknowledged at that time that Trump’s executive order lacked full legal force and would rely on congressional legislation to formally launch the Bitcoin reserve.
Additionally, Bitcoin’s high volatility has sparked internal government discussions about whether such assets can be held indefinitely.
Government Holds Over 300,000 Bitcoins, Worth More Than $21 Billion
According to Arkham Intelligence estimates, the U.S. government currently holds over 300,000 Bitcoins, worth more than $21 billion. In March 2025, then-White House official David Sacks stated that the U.S. Bitcoin reserve would be funded with forfeited Bitcoin, positioning it similarly to a “Digital Fort Knox,” where it cannot be sold, and a separate digital asset reserve vault would be needed. However, how this massive asset will be formally transferred into a virtual vault remains undecided.
The White House emphasized that premature Bitcoin sales in the past cost taxpayers about $17 billion, and that long-term holding would bring strategic advantages. Bitcoin is currently around $63,500, down nearly 50% from its all-time high of $126,080 in October 2025. Bloomberg analysis suggests that if the U.S. government had purchased at $93,000 when Trump first called for it, there would now be a paper loss of roughly one-third.
Lummis Pushes “American Reserves Modernization Act,” November Midterm Elections Key Variable for Legislation
According to reports, Senator Cynthia Lummis and Representative Nick Begich are pushing to codify the executive order into law, with the bill renamed the “American Reserves Modernization Act.” Begich said the bill aims to ensure Bitcoin is recognized as a reserve asset and to lock in policy, preventing future administrations from reversing course.
However, with the November 2026 midterm elections approaching, if the Republican Party, which generally supports the crypto industry, loses its majority, the bill may be difficult to pass in the short term.
Frequently Asked Questions
Why is the U.S. Bitcoin strategic reserve currently at an impasse?
According to Bloomberg, there are two main obstacles: a management power struggle between the Treasury Department and the Commerce Department, and questions about whether the Treasury Department has the legal authority; the Justice Department is studying options. Additionally, the executive order has been in effect for more than 16 months since being signed in 2025, but it lacks full legal force and must rely on congressional legislation to formally launch.
How much Bitcoin does the U.S. government currently hold?
According to Arkham Intelligence estimates, the U.S. government currently holds over 300,000 Bitcoins, worth more than $21 billion; how this asset will be formally transferred into a “Digital Fort Knox” remains unresolved.
What is the “American Reserves Modernization Act” and when might it pass?
According to reports, Senator Lummis and Representative Begich are pushing to codify Trump’s executive order into law to ensure Bitcoin is formally recognized as a reserve asset and to lock in policy; the November 2026 midterm elections are the biggest variable; if the Republican Party loses its majority, the bill may be difficult to pass in the short term.
