White House Announces Imminent Bitcoin Reserve Plan, Official Says Legal Hurdles Cleared

The White House is on the verge of a formal announcement regarding the U.S. Strategic Bitcoin Reserve (SBR), according to Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets.

Witt stated that the administration has cleared a major legal hurdle in establishing the reserve. “We’ll have an announcement,” he said in an interview. “I wish I could say more… It’s a breakthrough as far as getting everything in place, legally sound, properly safeguarding the assets.” ^[1]

The reserve currently holds an estimated 328,372 Bitcoin, representing approximately 1.6% of the total global supply. According to officials, these holdings were accumulated primarily through law enforcement seizures, including assets from the Silk Road takedown, the 2022 Bitfinex hack recovery and years of criminal forfeitures. President Donald Trump signed the executive order (EO) creating the reserve on March 6, 2025, fulfilling a campaign promise to position the United States as a global leader in digital assets. ^{[2] [3]}

Background on the Strategic Bitcoin Reserve

Trump’s EO directed the Department of the Treasury to establish the Strategic Bitcoin Reserve and barred the sale of any Bitcoin held in the reserve. ^[2] Since then, according to Witt, his deputy Harry John has led an interagency process to identify legal authorities, commission necessary legal memos and build a custody and reporting infrastructure across federal agencies that were originally designed for gold, not private keys. ^[1]

The Bitcoin holdings originate from major law enforcement actions. Assets were seized from the Silk Road marketplace, the recovery following the 2022 Bitfinex hack, and various criminal forfeiture cases.

A report from the Bitcoin Policy Institute, cited in the Trends Journal, outlined the economic case for a national Bitcoin stockpile, noting it could provide option value for economic and monetary stability. ^[4] Additionally, the Trends Journal has highlighted Bitcoin’s proof-of-work mechanism as an asset with real-world energy inputs and increasing marginal production costs, setting it apart from fiat currencies. ^[5]

Legal Hurdles and Security Concerns

Witt pointed to a breach at the U.S. Marshals Service (USMS) as evidence that the reserve’s security mandate is urgent. A government contractor named John Daghita allegedly stole more than $46 million in cryptocurrency from USMS custody accounts in late 2025, according to officials.

The Federal Bureau of Investigation arrested Daghita in March 2026. A separate $24 million theft was traced to October 2024. ^[1]

“It’s a case in point for why it was so necessary that the president established the SBR,” Witt said. The EO depends on the sitting president; it would expire the moment a new president takes office. This vulnerability has driven the push for congressional legislation to codify the reserve as a permanent program. ^[1]

Congressional Legislation to Codify the Reserve

Two bills moving through Congress aim to make the reserve permanent. Rep. Nick Begich (R-AK) recently rebranded the BITCOIN Act as the American Reserves Modernization Act (ARMA). Under ARMA, the Treasury Department would be authorized to purchase up to 200,000 Bitcoin per year for five years, with holdings locked for a minimum of 20 years.

Sen. Cynthia Lummis (R-WY) has set a deadline for a vote before the summer recess, as midterm campaigning begins to consume floor time. ^[1] If the ARMA passes, the Treasury’s first open-market Bitcoin purchase is projected for the fourth quarter of 2026. This would make the United States the first sovereign nation to actively accumulate Bitcoin as a strategic reserve asset. ^[1]

The legislative effort comes as Bitcoin’s price has fluctuated. Earlier in 2026, Bitcoin surged past $73,000 on a combination of short squeezes and renewed White House advocacy, according to a NaturalNews.com report. ^[6]

Outlook for the Bitcoin Reserve

The formal announcement from the White House is expected in the coming weeks, according to Witt, with further details to be released at that time. ^[1] If the ARMA is enacted, the U.S. would join El Salvador as a sovereign that holds Bitcoin as a strategic asset. The Trends Journal noted that El Salvador’s Bitcoin strategy has been winning, despite criticism from legacy powers like the IMF and international central banking consortiums. ^[7]

The creation of the Strategic Bitcoin Reserve represents a significant shift in U.S. digital asset policy, according to NaturalNews.com. The reserve is housed within the Treasury and aims to consolidate and safeguard the government’s Bitcoin holdings. ^[2] As legal and security concerns are addressed, the administration is moving ahead with what Witt called a breakthrough in ensuring the assets are legally sound and properly safeguarded. ^[1]

References

1. Micah Zimmerman. “White House: Bitcoin Reserve Announcement Is Imminent” – Bitcoin Magazine. May 18, 2026. (Also cited as Zero Hedge)
2. Willow Tohi. “Trump’s BITCOIN GAMBIT: U.S. launches Strategic Bitcoin Reserve to cement crypto dominance” – NaturalNews.com. March 12, 2025.
3. Willow Tohi. “Trump’s Strategic Bitcoin Reserve: A bold move or a missed opportunity for crypto growth” – NaturalNews.com. March 10, 2025.
4. Trends-Journal-2024-11-12.
5. Trends-Journal-2024-05-19.
6. NaturalNews.com. “Bitcoin surges past $73,000 as short squeeze and Trump’s crypto advocacy fuel rally”. March 5, 2026.
7. Trends-Journal-2024-12-10.

Explainer Infographic