A proposed US strategic Bitcoin reserve has hit a roadblock as federal agencies clash over which entity should control the digital asset stockpile, Bloomberg reported. The dispute has stalled progress on the initiative, which was a key campaign promise from the Trump administration.
The interagency battle centers on jurisdictional authority, with multiple government bodies vying for oversight of the proposed reserve. White House crypto adviser Patrick Witt stated in May that the administration was examining the legal implications of creating a Bitcoin reserve, signaling ongoing uncertainty around the plan's feasibility.
Market participants have grown cautious as the regulatory limbo persists. The lack of clarity on custody and management could dampen expectations for Bitcoin's price support from government adoption, though broader market sentiment remains tied to macroeconomic factors and spot ETF flows.
Critics argue that the administration's push for a national Bitcoin reserve lacks clear legal foundation and could set a dangerous precedent for government involvement in volatile asset markets. Some policymakers question whether such a reserve aligns with traditional fiscal stability goals or risks exposing taxpayers to cryptocurrency volatility.