The White House has cleared major legal hurdles for a formal announcement of the U.S. Strategic Bitcoin Reserve, according to Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets. Speaking at Bitcoin 2026 in Las Vegas on May 18, Witt signaled the announcement would arrive within weeks, marking the next phase of President Trump’s executive order establishing the reserve in March 2025. The move consolidates Bitcoin seized through law enforcement operations and bars the Treasury Department from selling any holdings.
Executive Order Sets Foundation for Sovereign Bitcoin Accumulation
President Trump signed the executive order establishing the Strategic Bitcoin Reserve on March 6, 2025, creating a framework to consolidate Bitcoin accumulated through criminal forfeitures, Silk Road seizures, and the 2022 Bitfinex hack recovery. The reserve currently holds 328,372 BTC, representing 1.6% of total global Bitcoin supply. The executive order explicitly prohibits the Treasury from liquidating reserve assets, cementing a hold-forever posture that makes the U.S. the first sovereign nation pursuing active Bitcoin accumulation as a strategic reserve asset.
Security Breaches Underscore Custody Urgency
Recent custody incidents have exposed vulnerabilities in government Bitcoin holdings. The U.S. Marshals Service suffered a $24 million theft in October 2024, followed by a second breach in late 2025 when government contractor John Daghita allegedly stole $46 million from USMS custody accounts. The FBI arrested Daghita in March 2026. Witt cited these incidents as validation of the reserve framework, stating the breaches demonstrate “why it was so necessary that the president established the SBR.” The legal groundwork Witt referenced likely addresses custody protocols and security infrastructure designed to prevent future losses.
Congressional Legislation Poised to Expand Holdings
Two complementary bills—the American Reserves Modernization Act (ARMA), sponsored by Rep. Nick Begich, and the BITCOIN Act, championed by Senator Cynthia Lummis—would formalize and expand the reserve through authorized open-market purchases. ARMA authorizes up to 200,000 BTC in annual purchases over five years, with a 20-year minimum holding period. Lummis is pushing for a Congressional vote before the summer recess. If passed, Treasury’s first open-market purchase is projected for Q4 2026, contingent on final legislative approval and implementation timelines.
Announcement Timeline Accelerates Implementation Phase
Witt’s “within weeks” timeline positions the formal announcement before the summer Congressional recess, aligning with Lummis’s legislative push. The announcement will detail custody safeguards, reporting infrastructure, and operational governance—the legal framework that has been cleared internally. This announcement precedes potential Congressional action and establishes the administrative foundation for the Treasury’s expanded purchasing authority should ARMA or the BITCOIN Act pass.
