USDWhite House Bitcoin Reserve Announcement Expected Within Weeks
U.S. Crypto Policy Push Moves Toward Legal and Operational Framework
TL;DR
- The Trump administration expects to announce next steps for the U.S. Strategic Bitcoin Reserve within weeks.
- The reserve is built around government-held Bitcoin from criminal forfeitures and law enforcement seizures.
- Lawmakers are weighing legislation that could codify the reserve and authorize up to 1 million BTC over five years.
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The Trump administration expects to announce the next steps for the U.S. Strategic Bitcoin Reserve within the next few weeks, with officials working on the legal and operational framework for a reserve backed by government-held Bitcoin.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said the administration has been working through the structure needed to implement President Donald Trump’s reserve plan and protect government-held Bitcoin on the federal balance sheet. Witt said the executive branch believes it can “take a big step forward” on the Strategic Bitcoin Reserve from its side, though he did not disclose the specific substance of the coming announcement.
The federal government holds roughly 328,372 BTC, worth around $25 billion at current prices, making the United States the largest known sovereign holder of Bitcoin and accounting for close to 1.56% of Bitcoin’s circulating supply. The reserve is backed by Bitcoin already held by the government, with the coins coming almost entirely from criminal forfeitures and law enforcement seizures rather than open-market purchases.
Reserve Plan Centers on Seized Bitcoin
Trump’s March 2025 executive order created the Strategic Bitcoin Reserve and a separate digital asset stockpile. The order directed federal agencies to consolidate government-held Bitcoin into the reserve and barred future Treasury sales of that Bitcoin.
Witt acknowledged that the executive order alone does not permanently lock the policy in place, because the no-sale commitment remains an administration-level position unless Congress codifies the reserve into federal law. Federal departments have spent more than a year cataloguing and pooling Bitcoin from separate forfeiture sources into a single custody structure, creating the operational foundation behind the expected announcement.
Treasury Secretary Scott Bessent said the government plans to keep adding confiscated BTC to the reserve while avoiding direct market purchases. Bessent also said the government plans to keep its gold reserve in place as a store of value for Americans, stating, “I doubt we’re going to revalue it.”
Lawmakers are working to formalize the reserve plan through an updated bill evolving into the American Reserves Modernization Act. The proposal includes a plan to accumulate up to 1 million BTC over five years through budget-neutral strategies.
Senator Cynthia Lummis confirmed that the Clarity Act is heading toward a May markup and could reach the president’s desk shortly after. The late 2026 National Defense Authorization Act markup is also described as the next realistic vehicle for reserve codification, with approval through that process potentially turning the holdings into a permanent national asset backed by statute.
Institutional Options Activity Draws Market Attention
Crypto analyst Jeff Park pointed to a structural shift in Bitcoin derivatives, saying IBIT options have overtaken Deribit in open interest for the first time. Park framed the move as a sign of institutional market dominance moving ahead of crypto-native trading venues.
Park criticized older market models that rely only on Deribit options, saying “DeVault is flawed,” because such models no longer capture the full structure of Bitcoin options demand. IBIT’s implied volatility is reported to be about five points higher than offshore exchanges, a spread interpreted as strong demand for long-term upside exposure from investors positioning early.
Park said Bitcoin could see a major upward move led by IBIT options, arguing that institutional options demand is becoming a stronger market signal than offshore crypto-native derivatives activity. The reserve announcement has also left traders focused on whether the administration’s reveal will address new acquisition strategies, custody arrangements, or accounting clarity.
FAQ
What is the Strategic Bitcoin Reserve?
A U.S. reserve built around government-held Bitcoin from forfeitures and law enforcement seizures.
When is the next announcement expected?
Patrick Witt said it is expected within the next few weeks.
Will the government buy Bitcoin directly?
Scott Bessent said the strategy avoids direct market purchases.
What could make the reserve permanent?
Congressional codification could turn the holdings into a permanent national asset.
This article has been refined and enhanced by ChatGPT.
