Trump Eyes Direct Bitcoin Reserve Purchases Amid Legal Hurdles

President Donald Trump maintains an interest in purchasing Bitcoin for the US Strategic Bitcoin Reserve, though legal restrictions and unresolved government custody arrangements continue to delay additional acquisitions, according to Moomoo. Former White House crypto adviser Patrick Witt discussed the plans during a November interview, noting that officials have considered several ways to acquire Bitcoin without increasing federal spending.

Legal Hurdles and Funding Options

Witt warned that direct, open-market purchases of Bitcoin could face significant legal challenges and potential congressional pushback without explicit statutory authority. The administration previously established the reserve through an executive order in March 2025, initially funding it with assets obtained through completed federal forfeiture proceedings.

To bypass traditional appropriations, the Treasury has explored alternative acquisition methods, including the potential revaluation of federal gold holdings, utilizing resources within the Exchange Stabilization Fund, converting existing government digital assets, or accepting Bitcoin for tax and fee payments. Treasury Secretary Scott Bessent will ultimately determine how the department proceeds with any acquisition strategy.

Custody Concerns and Legislative Roadblocks

Beyond funding mechanisms, Witt highlighted persistent issues regarding how federal agencies store and manage seized cryptocurrencies. Inconsistent records across departments have complicated efforts to establish a reliable accounting of government-held Bitcoin, with past reports noting instances of cold wallets stored in desk drawers.

Witt also pointed out that divided congressional control following the November midterm elections could make passing permanent legislation for the Strategic Bitcoin Reserve difficult, leaving the initiative reliant on executive orders.

Key facts

• President Trump remains interested in purchasing Bitcoin for the US Strategic Bitcoin Reserve, according to former adviser Patrick Witt.
• The administration has considered gold revaluation, existing Treasury funds, and digital asset conversions to acquire Bitcoin without raising federal spending.
• Federal agencies have faced custody challenges, including inconsistent records and legacy storage practices.
• Divided congressional control following the midterm elections creates obstacles for passing permanent reserve legislation.