- Patrick Witt said an announcement on the U.S. Strategic Bitcoin Reserve could come within weeks.
- Federal agencies are auditing and centralizing government-held bitcoin and crypto assets.
- Cold wallets stored across agencies were cited as a security concern.
- Legal and congressional questions remain under review regarding long-term custody and reserve structure.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said an announcement regarding the U.S. Strategic Bitcoin Reserve (SBR) is expected in the coming weeks. Speaking at the Consensus Miami conference on Wednesday, Witt said the federal government has been working for months to inventory, centralize, and secure bitcoin and other digital assets held by U.S. agencies.
According to Witt, the effort followed President Donald Trump’s executive order directing the federal government to retain bitcoin and other crypto assets in long-term holdings rather than liquidating them. Witt said the administration halted what he described as “fire sale” liquidations that occurred under the previous administration and began auditing digital assets held by federal agencies.
“We’ve heard stories and confirmed some of them of cold wallets that were being stored in drawers of desks in various agencies,” he said.
Government Reviewing Custody and Security of Digital Assets
Witt referenced a recent exploit involving assets held by the U.S. Marshals Service as an example supporting the need for centralized custody. Bloomberg reported in January that the U.S. Marshals Service was investigating a possible hack involving government digital-asset accounts after on-chain investigator ZachXBT claimed that a hacker stole more than $60 million in late 2025, including funds from government seizure wallets.
“It’s a case in point for why it was so necessary that the president established the SBR, and that he instructed the agencies to take these assets very seriously and properly safeguard them,“Custody is unique for digital assets.” Witt said.
Witt declined to disclose the amount of bitcoin or other crypto assets currently held by the federal government.
“Number one is we want to get our own house in order. We want to properly safeguard, custody these assets before we discuss any details around it,” he said.
He added that the upcoming announcement could address questions related to the size and structure of the reserve but said he did not want to “front run any of the other principals involved.”
Reserve Structure and Legal Questions Still Under Review
Witt clarified that not all newly seized digital assets would automatically be transferred into the reserve. He said crypto assets involved in active legal proceedings remain in pending status until forfeiture is finalized. Assets may also be returned to victims through restitution before being transferred into the bitcoin reserve or a separate stockpile planned for other crypto assets.
According to Witt, government staff have also been reviewing legal questions related to agency authority over holding digital assets, the duration of custody, and whether the assets could be subject to congressional clawback.
“This really hadn’t been explored until the president signed the executive order,” he said.
Witt said congressional legislation would still be required to formally codify the reserve structure. He referenced Sen. Cynthia Lummis’s BITCOIN Act in the Senate and Rep. Nick Begich’s American Reserves Modernization Act in the House of Representatives.
“It always needs to be followed up with proper legislation,” Witt said.
The article noted that the need for legislative support has been a major constraint in the process and that it remains unclear when Congress may move forward with reserve-related legislation.
FAQs
1. What is the U.S. Strategic Bitcoin Reserve?
The U.S. Strategic Bitcoin Reserve is a federal initiative announced under President Donald Trump’s executive order to retain and safeguard government-held bitcoin and certain digital assets as long-term holdings.
2. When will the Strategic Bitcoin Reserve announcement be made?
Patrick Witt said an announcement regarding the Strategic Bitcoin Reserve is expected within the next few weeks.
3. Will all seized crypto assets automatically enter the reserve?
No. Patrick Witt said crypto assets involved in active legal proceedings remain pending until forfeiture is finalized, and some assets may be returned to victims through restitution before being transferred.
4. Why is the government centralizing digital asset custody?
According to Patrick Witt, the government is centralizing custody to improve security and safeguard digital assets after concerns about decentralized storage practices and reported exploits involving government-held crypto wallets.
