President Trump still wants to buy Bitcoin for US reserve, ex-adviser says

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President Donald Trump has remained interested in purchasing Bitcoin for the US Strategic Bitcoin Reserve, although legal restrictions and unresolved government custody arrangements have prevented the administration from moving ahead with additional acquisitions.

Summary

Former White House adviser Patrick Witt says President Trump remains interested in purchasing Bitcoin for the reserve.
Witt warned that direct Bitcoin purchases could face legal challenges without clear authority from Congress.
Treasury has considered gold revaluation, existing government funds and digital asset conversions to acquire Bitcoin.
Government cryptocurrency custody problems remain unresolved, including inconsistent records and concerns over wallet security.
Witt warned that divided congressional control could make passing permanent Bitcoin reserve legislation difficult.

Former White House crypto adviser Patrick Witt discussed the plans during a What Bitcoin Did interview published on November 9. Witt, who led the White House crypto council until October, said officials had considered several ways to purchase Bitcoin without increasing federal spending.

“I can tell you the president’s interested in it. I can tell you that there has been a lot of discussion about how we might be able to do that,” Witt said.

His comments follow the November 3 midterm elections, which gave Democrats control of Congress and created further obstacles for legislation supporting federal Bitcoin purchases.

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Trump Bitcoin reserve plans face legal hurdles

Although Trump established the Strategic Bitcoin Reserve in March 2025, the government has not announced a program for purchasing Bitcoin directly from the market.

The executive order directed the Treasury and Commerce departments to develop acquisition strategies that would not create additional costs for taxpayers.

It initially funded the reserve with Bitcoin obtained through completed federal forfeiture proceedings, while requiring agencies to examine which assets they could legally transfer.

Witt explained that the administration had considered buying Bitcoin directly but remained concerned about whether existing laws permitted such purchases.

“It’s of questionable legality whether or not there could be outright open market purchases,” he said.

The former adviser described discussions about whether moving ahead without clearer authority might prompt lawmakers to introduce restrictions.

He specifically mentioned the possibility of Congress adding language to the National Defense Authorization Act that would prohibit federal Bitcoin purchases.

“We didn’t necessarily want to do something that then had a boomerang effect,” Witt explained.

Treasury considers gold and other ways to buy Bitcoin

Several proposals have been discussed within the administration, including revaluing federal gold holdings and using resources already controlled by the Treasury Department.

Under the gold proposal, the government could potentially update the accounting value of its gold certificates, currently recorded at a statutory price far below market value.

However, the existing legal framework does not automatically permit Treasury to use an accounting adjustment to finance Bitcoin purchases.

Other proposals include using the Treasury’s Exchange Stabilization Fund, converting government-held digital assets into Bitcoin, or accepting BTC for certain tax and fee payments.

Witt said Treasury Secretary Scott Bessent would ultimately determine how the department proceeds with any legally permitted acquisition strategy.

In August, Trump confirmed discussions about additional Bitcoin purchases but did not announce a decision or timetable.

Senator Cynthia Lummis has supported legislation that would allow the government to accumulate as many as one million BTC over five years.

A separate House Bitcoin reserve proposal introduced by Representative Nick Begich would require Treasury to study budget-neutral acquisitions without setting a fixed purchase target.

That legislation would require eligible Bitcoin deposited into the reserve to remain there for at least 20 years, subject to specified exceptions.

US Bitcoin reserve faces custody problems

Beyond funding, Witt described problems with how federal agencies have historically stored and managed seized cryptocurrencies.

He said government officials had encountered inconsistent records, making it difficult to establish a reliable accounting of Bitcoin held across different departments.

Some agencies had reportedly stored cold wallets in desk drawers, while others relied on outside custody providers.

Witt previously raised similar concerns during a May appearance at Consensus, describing weaknesses in federal cryptocurrency storage arrangements.

He referenced allegations involving the US Marshals Service, where authorities had investigated a suspected theft affecting government-linked digital asset wallets.

The allegations concerned a possible theft of more than $60 million in cryptocurrency and raised concerns about access to assets under federal control.

Government custody practices have faced further scrutiny following transfers to Coinbase Prime involving hundreds of Bitcoin in October.

The Marshals Service selected Coinbase Prime in 2024 to provide custody and advanced trading services for certain digital assets handled through federal forfeiture operations.

Bitcoin reserve legislation faces divided Congress

Witt said making the Strategic Bitcoin Reserve permanent through legislation would be difficult because of political disagreements over cryptocurrency regulation.

“It’s going to be hard. It’s going to be really hard,” he said when asked whether Congress could establish the reserve through legislation.

He suggested that provisions supporting the reserve might be attached to larger legislation, although a standalone bill would face considerable opposition.

The interview was recorded before the November 3 elections, when Democrats subsequently won control of both chambers of Congress.

The reserve currently operates under Trump’s executive order, which another president could amend or revoke without new legislation.

Separately, Trump Media & Technology Group recently transferred 4,259 Bitcoin to Crypto.com from wallets associated with convertible-note collateral.

The November 5 transfers were valued at approximately $343.7 million. Trump Media has not publicly confirmed that the transactions involved Bitcoin sales.

The company subsequently reported holding approximately 15,649 BTC as of September 30, following purchases of 4,359 Bitcoin during the third quarter.

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