Patrick Witt, who led the White House crypto council until leaving the administration in October, said on November 9 that President Trump still wants to buy Bitcoin for the federal Strategic Bitcoin Reserve, but a rider attached to the National Defense Authorization Act (NDAA) bars direct open-market purchases. Witt explained the barrier is constitutional: Congress controls federal spending, making open-market purchases with appropriated funds legally questionable. The reserve was established through an executive order signed on March 6, 2025, which consolidated Bitcoin obtained through forfeiture and instructed the Treasury and Commerce Departments to develop budget-neutral acquisition strategies, though no such strategy has been published and the reserve's legal foundation remains vulnerable without congressional legislation.
NDAA Rider Blocks Direct Bitcoin Purchases Due to Congressional Spending Control
Witt gave his assessment on the What Bitcoin Did podcast, in an episode recorded before the November 3 midterm elections and published on Monday, November 9. "I can tell you the president is interested in this," he told host Danny Knowles, adding that officials had debated execution paths many times. The obstacle he described is constitutional rather than operational: Congress controls federal spending, and buying coins on the open market with appropriated money raises legality questions. That concern, in his telling, is what pushed lawmakers to write language into the NDAA explicitly forbidding such an operation. "We are working to get to the point where it is permitted, where we have authorization," Witt said. He cast the selection of lawful acquisition methods as a decision for Treasury Secretary Scott Bessent, and noted that the Treasury Department would need standing custody facilities before it could take delivery of coins at all. His remarks carry no official weight, since he departed when his detail expired and spoke in a personal capacity.
March 6, 2025 Executive Order Establishes Reserve with Forfeited Bitcoin
The reserve rests on an executive order signed on March 6, 2025, which consolidated Bitcoin the federal government had already obtained through forfeiture and instructed the Treasury and Commerce Departments to develop budget-neutral ways to add to it, meaning acquisition strategies that impose no new cost on taxpayers. No such strategy has been published, no open-market purchase has ever been announced, and a full inventory of the government's holdings remains unfinished, with disagreement over how far the order's authority reaches. Through seizures, Washington already ranks in the crypto whale tier, so the live question is not whether the state holds coins but whether it will buy more. Witt was blunt about the statute: with Congress divided, passing standalone legislation to make the reserve permanent would be "extremely difficult". Absent a law, the reserve exists only on the strength of executive orders, and he warned that unwinding a predecessor's orders is "often among the first things they do" for an incoming president.
Democrats Gain Congressional Control After November 3 Midterms
The politics tightened after the November 3 midterms, which gave Democrats control of both chambers before the new Congress is seated in January. Strategy executive chairman Michael Saylor, one of the loudest voices of Bitcoin maximalism, has argued since the vote that backing for sovereign Bitcoin holdings cuts across party lines. The CLARITY Act remains stalled in the Senate, and the White House has been reviewing the U.S. Securities and Exchange Commission's crypto rulemakings.
Bitcoin Price Drops to $72,787 on Wednesday, Recovers to $73,600
The interview surfaced while the Bitcoin price was under pressure: the coin slid to $72,787 on Wednesday after US consumer inflation printed above forecasts, then recovered to roughly $73,600, and rate markets began pricing a Federal Reserve hike in December. The near-term path for the coin is being set by flows rather than Washington rhetoric: spot ETF products shed $95 million on Tuesday, a fourth straight day of outflows, while the 10-year Treasury yield topping 5% keeps pressure on risk assets. Yet a confirmed signal that the federal government could become a systematic buyer would introduce a demand channel the market does not currently price. The watch items are concrete: any Treasury guidance on budget-neutral acquisition, the rider's fate in the next NDAA, and whether the outgoing Congress takes up digital asset legislation before January.
FAQ
What did Patrick Witt say about the US Strategic Bitcoin Reserve on November 9?
Patrick Witt said on November 9 that President Trump still wants to buy Bitcoin for the US Strategic Bitcoin Reserve, but a rider attached to the National Defense Authorization Act (NDAA) bars direct open-market purchases because Congress controls federal spending.
When was the Strategic Bitcoin Reserve established and how is it funded?
The Strategic Bitcoin Reserve was established through an executive order signed on March 6, 2025. It is funded with Bitcoin the federal government obtained through forfeiture, and the order mandates budget-neutral acquisition strategies that impose no new cost on taxpayers.
What happened in the November 3 midterm elections that affects the Bitcoin reserve?
Democrats won control of both congressional chambers in the November 3 midterms, and the new Congress takes office in January. This political shift makes passing standalone legislation to make the reserve permanent "extremely difficult" according to Witt.
