Bitcoin (CRYPTO: BTC) could see a major institutional demand catalyst as former White House crypto adviser Patrick Witt claimed President Trump remains interested in purchasing the crypto asset for the U.S. Strategic Bitcoin Reserve.
Speaking on the "What Bitcoin Did" podcast on Nov. 9, Witt confirmed that the Trump administration has explored several ways to expand its Bitcoin holdings.
He warned that outright open-market purchases face legal uncertainty because Congress controls federal spending.
Witt identified several possible alternatives:
- Gold revaluation: Repricing government gold holdings to potentially free up funds for BTC purchases.
- Exchange Stabilization Fund: Exploring whether existing Treasury resources could finance acquisitions.
- Asset conversions: Converting other government-held digital assets into Bitcoin.
- Tax and fee payments: Accepting BTC for certain government payments and retaining it on the federal balance sheet.
These options require further legal review.
Witt said Treasury Secretary Scott Bessent could play a central role in determining whether the government moves forward.
Why Could Bitcoin Reserve Plans Face Delays?
Witt said the government has yet to complete a reliable audit of its Bitcoin holdings, with inconsistent agency records and weak custody practices complicating efforts.
He pointed to instances of cold wallets stored in drawers and inconsistent security practices across agencies.
Treasury is strengthening custody infrastructure before considering further purchases.
He also warned that the reserve remains politically vulnerable because it was created through an executive order rather than legislation.
A divided Congress could make passing a standalone bill difficult, while a future administration could reverse the order.
