Former White House crypto advisor Patrick Witt recently disclosed that while President Donald Trump maintains his intention to expand the U.S. Strategic Bitcoin Reserve, the administration faces significant legal and legislative hurdles. Speaking on the "What Bitcoin Did" podcast on November 9, 2026, Witt noted that although an executive order established the reserve in March 2025, direct open-market purchases of Bitcoin (BTC) remain of "questionable legality" due to existing Congressional restrictions and budget authority protocols.
Legislative Restrictions and the NDAA
A primary obstacle cited by Witt is a provision within the National Defense Authorization Act (NDAA) for Fiscal Year 2026, which reportedly prohibits the federal government from conducting outright open-market purchases of digital assets. Under the U.S. Constitution, Congress holds the "power of the purse", meaning the executive branch cannot allocate funds for substantial BTC acquisitions without explicit legislative approval.
Witt highlighted the following key points regarding the current status:
- The reserve was established via executive order on March 6, 2025, primarily using assets seized through criminal and civil forfeitures.
- Total government holdings are estimated at approximately 328,372 BTC as of late 2026, making the U.S. the largest sovereign holder of the asset.
- The administration is exploring budget-neutral methods to increase holdings, such as revaluing gold reserves or using the Exchange Stabilization Fund.
Custody Challenges and Political Deadlock
Beyond acquisition, Witt pointed to internal operational difficulties, including the need for a comprehensive audit of current government holdings. He described past custody practices as inconsistent, with digital assets scattered across various agencies in sub-optimal storage conditions. The Treasury Department is currently focused on strengthening the infrastructure for a "Digital Fort Knox" before proceeding with further expansion.
"We didn’t necessarily want to do something that then had a boomerang effect and led Congress to actually put a rider in the NDAA that says you cannot do this. We're trying to get to the place where it is permitted and where the authority is granted", Witt explained regarding the cautious approach to open-market buys.
Furthermore, the recent 2026 midterm elections have resulted in a divided Congress, complicating the passage of the American Reserve Modernization Act (ARMA) or the BITCOIN Act. These bills aim to codify the reserve into permanent law and authorize the purchase of up to 1 million BTC over five years, but they face stiff opposition in a partisan political environment.
As of November 2026, the U.S. Strategic Bitcoin Reserve remains dependent on executive authority, leaving it vulnerable to potential policy reversals by future administrations. While the executive order has successfully halted the sale of forfeited Bitcoin, the path toward active accumulation remains contingent on navigating a complex web of federal spending laws and bipartisan negotiations.
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