Trump Still Wants Bitcoin Reserve but Faces Legal Hurdles

Trump's Goal for a U.S. Strategic BitcoinBTC+0.19% Reserve

President Donald Trump remains keen on acquiring Bitcoin for a proposed U.S. Strategic Bitcoin Reserve. However, legal restrictions currently prevent the administration from making open-market crypto purchases.

Former White House crypto council executive director Patrick Witt shared these details during an interview on the What Bitcoin Did podcast. Witt, who left his government post in October 2026 for the private sector, confirmed that high-level discussions about acquiring Bitcoin are ongoing.

I can tell you the president's interested in it. There has been a lot of discussion about how we might be able to do that.

The reserve initiative began in March 2025 with an executive order. That order consolidated Bitcoin previously seized by federal law enforcement into a central pool. It also directed the Treasury and Commerce departments to find budget-neutral ways to acquire more assets. So far, no public acquisition strategy has been released.

The Legal Wall: Why the Government Cannot Just Buy Bitcoin

Despite official interest, making direct open-market purchases presents significant legal challenges. Under the U.S. Constitution, Congress holds exclusive authority over federal spending.

Witt noted that open-market purchases carry questionable legality without clear authorization from lawmakers. To prevent such buying, Congress added specific restrictions into military spending legislation.

• NDAA Rider: Lawmakers inserted a rider into the National Defense Authorization Act (NDAA) explicitly blocking funds from being used to buy digital assets on the open market.
• Lack of Direct Authority: Witt explained that the administration is working to secure permission, but getting that authority requires action from Congress.
• Executive Order Vulnerability: Without permanent legislation, any reserve created by executive order can easily be reversed by a future president.

Witt highlighted the limits of executive power, pointing out that incoming presidents frequently cancel executive orders issued by predecessors during their first days in office.

How Midterm Elections Shifted the Political Landscape

Passing reserve legislation has become much harder following the midterm elections on November 3, 2026. Democrats won control of both the Senate and the House of Representatives in the vote.

According to research from Galaxy Research, this political shift creates new challenges for crypto policy initiatives:

• Senate Banking Chair: Senator Elizabeth Warren, a long-time crypto critic, is set to chair the Senate Banking Committee.
• Stalled Legislation: The CLARITY Act remains stalled in the Senate without a clear path forward.
• Policy Reviews: The White House is reviewing Securities and Exchange Commission (SEC) crypto rules following the midterm election results.

Bipartisan Hope vs. Political Reality

Despite these obstacles, some industry leaders remain optimistic about national Bitcoin holdings.

MicroStrategy Executive Chairman Michael Saylor argued after the election that sovereign Bitcoin reserves have support across political lines. He noted that lawmakers from both parties recognize the importance of digital assets.

However, Witt cautioned that passing a standalone Bitcoin reserve bill through a divided Congress will be extremely difficult, as getting opposing lawmakers to agree presents major political hurdles.

Market Impact and Economic Factors

These legal discussions come during a period of market price shifts. Bitcoin traded around $73,725 (-0.89%) on November 11, 2026, while EthereumETH-0.92% traded near $2,055 (-2.15%). Bitcoin previously dipped to $72,787 following stronger-than-expected Consumer Price Index (CPI) inflation data.

The higher inflation reading led financial markets to price in an increased likelihood of a Federal Reserve interest rate hike in December. Derivatives markets also showed stress, with options traders watching key support levels near $72,000.

Past performance of digital assets is not an indicator of future results. Check real-time market data on Bitkub Market.

What Crypto Traders Are Watching Next

Market observers are keeping a close eye on several developments to see if government Bitcoin buying could eventually happen.

1. Treasury Announcements: Any updates from the Treasury Department regarding budget-neutral buying strategies.
2. NDAA Legislation: Whether Congress keeps or removes the restrictive rider in future defense bills.
3. Lame-Duck Session: Potential moves by the outgoing Congress on digital asset laws before new lawmakers take office in January.

Any official sign that Washington could become an active buyer could impact market sentiment. However, open-market purchases remain blocked until lawmakers grant clear legal authority. Investors should remember that digital asset prices remain volatile and sensitive to broader economic changes.