Bitcoin News

Story: U.S. Bitcoin Reserve Plan Hits Wall as 3 Agencies Fight Over Control

By Bruce Buterin

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Which Agency Takes the Lead?. The core fight is pretty simple on the surface: who's in charge? But underneath that, it's a mess.

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Legal Gaps Nobody Wants to Own. The legal challenge goes deeper than just picking an agency. Current U.S.

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Where the Proposal Sits Now. Stalled. That's pretty much the honest answer. No consensus among the agencies, no unified…

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The plan for a national Bitcoin reserve is basically dead in the water right now. Federal agencies can't agree on who runs it, who owns it, or what law even covers it — and…

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The Treasury Department, the Federal Reserve, and other federal bodies are all at odds. Each one has its own read on jurisdiction, and none of them want to cede ground.

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So agencies are essentially trying to map a new asset class onto old rules. And that's hard.

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Each agency is probably also thinking about liability. Nobody wants to be the one that signed off on a billion-dollar Bitcoin position that then craters.

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The legal challenge goes deeper than just picking an agency. Current U.S. law wasn't written with digital currencies in mind.

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Read also: White House Weighs Federal Bitcoin Reserve as Multiple Agencies Join Talks

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Patrick Witt's May comments were the clearest public signal that the White House knows the legal picture is murky. He didn't offer a solution.

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And the volatility issue won't go away. Bitcoin's price swings are a genuine complication for a reserve asset, which by definition is supposed to be stable and reliable.

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Broader context matters here too. Several other countries have debated similar ideas, and most have moved slowly or not at all. The U.S.

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Stalled. That's pretty much the honest answer. No consensus among the agencies, no unified regulatory framework, and no clear path to either.

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See also: Bitcoin ETF Outflows Hit Record High Amid Market Uncertainty

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The concept of a national Bitcoin reserve still has backers inside the administration who see it as a way to engage seriously with digital assets at a sovereign level.

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