US agency turf war threatens Trump's Bitcoin reserve plan, BTC/USD rises

Bitcoin edged higher on Monday despite a brewing legal turf war between the US Treasury and Commerce departments over which agency should control seized Bitcoin for a potential strategic reserve, as proposed by former President Donald Trump.

The dispute centers on the legal authority to hold and manage the federal government's Bitcoin holdings, currently valued at over $20 billion. The Treasury argues it has the statutory mandate, while Commerce claims the reserve would better serve economic policy goals under its purview. This bureaucratic conflict introduces fresh uncertainty about the feasibility and timeline of Trump's plan, which had previously boosted sentiment in the crypto market. However, Bitcoin's ability to rise on the news suggests traders are treating the reserve question as a long-term structural issue rather than an immediate price driver.

For currency and crypto traders, the outcome matters because Washington is one of the world's largest Bitcoin holders. Any eventual resolution — whether housed at Treasury or Commerce — could affect supply dynamics if the government decides to sell or accumulate. The broader risk-on mood in markets, supported by steady equity indices, has also helped BTC/USD hold above recent lows. For real-time price levels, NowPrice provides up-to-the-second quotes on BTC/USD and other major crypto pairs.

Looking ahead, traders will watch for any official statements from either department or the White House clarifying the legal framework. The token remains nearly 50% below its October peak, and the path forward depends on both regulatory clarity and broader macro conditions, including Federal Reserve policy and risk appetite. Key support and resistance levels around $60,000 and $70,000 will be closely monitored.