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The White House is poised for a formal declaration regarding the U.S. Strategic Bitcoin Reserve, with the official leading the initiative stating that the most challenging phase is concluded.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, informed an interviewer this week that the administration has overcome a significant legal obstacle in establishing the reserve.
“We will make an announcement,” Witt stated. “I regret I cannot provide further details… It represents a major step forward in getting everything prepared, ensuring legal compliance, and properly securing the assets.”
This indication follows a comparable statement Witt made at the Bitcoin 2026 conference in Las Vegas, where he informed the attendees that an update was forthcoming within weeks.
President Trump enacted the executive order that created the Strategic Bitcoin Reserve on March 6, 2025. Since that time, Witt noted that his deputy, Harry John, has spearheaded the interagency efforts: identifying existing legal authorities, commissioning the required legal opinions, and developing a framework for custody and reporting adapted for federal agencies originally set up for gold, not private keys.
The reserve currently holds an estimated 328,372 BTC—approximately 1.6% of the total worldwide supply—gathered through law enforcement confiscations, including the successful operation against Silk Road, the recovery from the 2022 Bitfinex hack, and numerous criminal asset forfeitures over the years.
The executive order expressly forbids the Treasury Department from divesting any of the Bitcoin holdings.
A government bitcoin security incident spurred action for the U.S. administration
Witt highlighted a security breach at the U.S. Marshals Service as evidence of the urgent need for the reserve’s security protocols. A contractor named John Daghita is accused of absconding with over $46 million in cryptocurrency from USMS custody accounts in late 2025, and the FBI apprehended him in March 2026. A separate theft amounting to $24 million was linked to October 2024.
“This incident exemplifies why it was crucial for the president to establish the SBR,” Witt remarked.
An executive order ceases to be effective the moment a new president assumes office. This inherent risk forms the basis of the argument for two legislative proposals currently progressing through Congress. Representative Nick Begich has recently renamed the BITCOIN Act as the American Reserves Modernization Act (ARMA), which would empower the U.S. Treasury to acquire up to 200,000 BTC annually for a period of five years—with assets held for a minimum of two decades. Senator Cynthia Lummis has set a timeframe for Congress, advocating for a vote prior to the summer recess as midterm election campaigning starts to occupy legislative time.
Should the BITCOIN Act be enacted, the Treasury’s initial Bitcoin acquisition on the open market is anticipated in the fourth quarter of 2026—positioning the United States as the first sovereign nation to actively accumulate Bitcoin as a strategic reserve asset.
Learn more at : bitcoinmagazine.com