Woofun AI reports that the Trump administration’s initiative to establish a US Strategic Bitcoin Reserve has encountered significant structural friction, driven by a jurisdictional dispute between the Commerce Department and the Treasury Department regarding primary oversight authority. This internal conflict threatens to delay the operationalization of the reserve, a cornerstone of Donald Trump’s broader economic strategy, as reported by Bloomberg.

The core of the disagreement stems from an executive order issued in March 2025, which designated the Treasury Department as the custodian for the reserve while assigning other agencies roles in asset seizures.

However, legal concerns have surfaced regarding the Treasury’s authority to manage Bitcoin (BTC) holdings, largely due to the asset’s inherent volatility. It was reported on Monday that the Department of Justice is currently collaborating with both agencies to identify legally available options, with the Commerce Department emerging as a potential alternative overseer.

This administrative tug-of-war occurs against the backdrop of a strategic pivot intended to position the US as the "crypto capital of the world." The White House aims to reclassify digital assets, specifically Bitcoin, from mere seized commodities to strategic reserve assets. White House spokesperson Liz Huston told Cointelegraph that the administration continues to evaluate the optimal structure for both the Strategic Bitcoin Reserve and the US Digital Asset Stockpile to fulfill this vision.

Woofun AI data shows that currently, the nation holds 328,372 Bitcoin, valued at $21.1 billion, representing the largest stockpile of any nation-state, despite periodic sales mandated by court-ordered actions. Legislative efforts to formalize this position include the BITCOIN Act and the ARMA Act, introduced in May, which propose acquiring 1 million Bitcoin over five years through budget-neutral strategies. These bills seek to codify the reserve’s existence and acquisition methodology within federal law.

Patrick Witt, a top crypto adviser to the White House, characterized the ARMA Act as "Version 2" of the BITCOIN Act, emphasizing the administration’s focus on ensuring the reserve is legally sound and properly safeguarding the assets. Witt noted that the White House has spent considerable time examining the legal implications, framing the legislation as a breakthrough in asset protection. Under the ARMA framework, Bitcoin must be held for a minimum of 20 years, unless sold to help reduce the national debt, which is approaching $40 trillion.

Industry observers argue that resolving these interagency issues could validate Bitcoin as a legitimate category of capital allocation. Tim Kotzman, host of the Bitcoin Treasuries Podcast, stated that the reserve strengthens the case for strategic adoption. While 15 nation-states hold Bitcoin, El Salvador remains the only country with a formally established Bitcoin reserve making routine purchases, highlighting the US’s potential to lead in this emerging asset class.