US Strategic Bitcoin Reserve Stalled, What's Going On?

The United States government has actually taken a major step by announcing the US Bitcoin Reserve as part of its national digital asset strategy. However, more than a year after the policy was announced, the Strategic Bitcoin Reserve has still not been fully operational. 

The reason is not a lack of Bitcoin, but rather legal processes, division of authority, and governance issues that are still being debated at the federal level. This situation is noteworthy because the United States is currently one of the largest Bitcoin holders in the world.

Key Takeaways

• The US government still controls approximately 328,000 BTC, most of which comes from seized assets.
• The dispute over authority between the Treasury and Commerce departments is one of the main obstacles to implementing the Strategic Bitcoin Reserve.
• The proposed American Reserve Modernization Act (ARMA) is projected to become the permanent legal basis for the national Bitcoin reserve.

Why Has the US Strategic Bitcoin Reserve Not Been Implemented?

President Donald Trump signed Executive Order 14233 in March 2025 as the basis for establishing the Strategic Bitcoin Reserve. 

The policy marked a major shift in the US government's approach to Bitcoin, moving from routinely auctioning seized assets to considering it as part of the nation's strategic reserves.

However, the policy's implementation has not yet fully taken effect. As of mid-2026, there is no official agency designated as the manager of the reserve, nor any permanent operational procedures. 

According to a report by Coindoo, the government is still resolving various administrative and legal issues before the reserve can function fully.

One of the main principles held by the government is the budget-neutral policy, meaning no tax revenue or state budget is used to purchase Bitcoin. Therefore, the assets currently entering the reserve largely come from seizures in various criminal and civil cases.

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Treasury vs Commerce: Who Has the Right to Manage Bitcoin?

The biggest obstacle actually comes from within the government itself. Initially, many expected the US Department of the Treasury to be the primary manager of the national Bitcoin reserve because it has long handled government-seized assets.

However, in its development, the US Department of Commerce has also been mentioned as having an interest in taking on that role. Differences in views regarding authority, responsibility, and the model for managing digital assets have caused the implementation process to proceed more slowly than expected.

In addition, the Office of Legal Counsel under the Department of Justice (DOJ) is still reviewing whether the federal government has a sufficiently strong legal basis to hold Bitcoin long-term. 

Asset seizure rules have generally required seized assets to be sold promptly through auction processes. Therefore, changing Bitcoin's function into a national reserve asset requires a new legal interpretation.

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The US Government Now Holds Approximately 328,000 BTC

Source: Unsplash

Based on data cited by Coindoo, the United States government currently controls approximately 328,352 BTC with a value exceeding US$21 billion based on market prices at the time the article was published.

The majority of these Bitcoins come from seizures in major cases, including law enforcement operations against criminal activities in the digital world. For years, the US government chose to auction off most seized Bitcoins.

Now its approach is beginning to change. The government believes that selling digital assets in the past potentially caused the loss of very large gains along with Bitcoin's price increase in recent years. Internal estimates even suggest potential lost profits of around US$17 billion if those assets had been held.

This paradigm shift shows that Bitcoin is increasingly viewed as a long-term strategic asset, rather than merely seized property that must be quickly converted into cash.

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The Role of ARMA in the Future of the US Bitcoin Reserve

To give the Strategic Bitcoin Reserve stronger legal certainty, attention is now focused on the American Reserve Modernization Act (ARMA). The proposed legislation is seen as a follow-up step that can provide a permanent foundation for the national Bitcoin reserve policy.

If passed, ARMA is projected to designate the Treasury as the official custodian of government Bitcoin, require regular independent audits, present reserve reports (proof of reserve), and regulate long-term asset storage.

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Some proposals in the draft also open the possibility for the government to accumulate up to one million BTC in the coming years through mechanisms that still maintain the principle of budget neutrality. However, all these provisions are still awaiting discussion and approval by Congress.

For the crypto market, regulatory certainty is an important factor because it will determine the direction of US government policy toward Bitcoin in the long term and provide signals to other countries considering similar strategies.

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Conclusion

The Strategic Bitcoin Reserve is one of the most ambitious digital asset policies ever taken by the United States government. However, its implementation is still stalled due to legal issues, governance, and division of authority between agencies.

As long as these obstacles are not resolved, the government is expected to continue holding seized Bitcoin as an initial reserve while awaiting a more permanent legal basis through ARMA. The success of this process has the potential to establish a new standard for how countries manage digital assets in the future.

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FAQ

What is the Strategic Bitcoin Reserve?

The Strategic Bitcoin Reserve is the US government's plan to hold Bitcoin as a national strategic reserve. The reserve primarily consists of assets obtained through seizures.

How much Bitcoin does the US government hold?

The US government is estimated to control around 328,352 BTC. Most of these assets were obtained through law enforcement processes.

Why hasn't the Strategic Bitcoin Reserve been implemented?

Implementation is still delayed due to ongoing legal reviews and the lack of agreement on which agency will manage the reserve.

What is the American Reserve Modernization Act (ARMA)?

ARMA is a proposed law aimed at providing a permanent legal basis for managing the Strategic Bitcoin Reserve and government digital asset governance.

Is the US government buying Bitcoin with tax money?

No. The current policy applies the budget-neutral principle, so tax funds are not used for Bitcoin purchases.

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