The US Strategic Bitcoin Reserve, created by Executive Order on March 6, 2025, cannot make open-market purchases without explicit congressional approval, according to Patrick Witt, former executive director of the President's Council of Advisors for Digital Assets.
Witt made the comments during a podcast on November 9, 2026. He explained that a rider attached to the National Defense Authorization Act requires Congress to authorize any open-market Bitcoin acquisitions, raising legal questions about purchases made without that approval.
Current Reserve Structure
The reserve was designed to hold Bitcoin obtained through federal forfeitures rather than purchased coins. Executive Order 14233 also directed Treasury and Commerce to explore acquisition strategies that would be cost-neutral to taxpayers. To date, no such purchases have occurred.
Current estimates of the government's Bitcoin holdings range from 200,000 to 328,000 BTC, gathered primarily through seizures.
Pending Legislation
The American Reserve Modernization Act, H.R. 8957, cleared the House Financial Services Committee on September 16, 2026, by a vote of 28-21 along partisan lines. The bill addresses custody procedures, sets a 20-year holding period for Bitcoin, and requires annual transparency reporting. However, it has not passed the full House or Senate.
Treasury Secretary Scott Bessent holds final authority over the reserve's future. Current work focuses on custody infrastructure and legal compliance rather than new acquisitions.
Budget-Neutral Options Under Review
Potential cost-neutral acquisition methods include gold revaluation—updating the accounting value of government gold holdings to free up paper value—and asset conversions that would swap existing holdings into Bitcoin. Neither approach has advanced beyond the exploratory stage.
Long-Term Stability Concerns
Witt highlighted the vulnerability of an executive order foundation. An executive order can be reversed by a future administration, whereas legislation would require another act of Congress to undo, creating a much higher bar for reversal.
