- White House audits federal crypto holdings after order halting bitcoin sales and creating reserve structures.
- Administration reviews custody weaknesses while agencies separate forfeited assets from ongoing legal cases.
- Congress considers legislation to formalize the Strategic Bitcoin Reserve and long-term custody authority.
The White House is preparing a Strategic Bitcoin Reserve announcement within weeks, according to Patrick Witt at Consensus Miami on Wednesday. Witt, who leads the President’s Council of Advisors for Digital Assets, said the administration has spent months auditing and securing government-held crypto after President Donald Trump ordered agencies to halt bitcoin liquidations and review existing holdings.
Agencies Review Federal Crypto Holdings
According to Witt, the administration discovered weak storage practices while reviewing digital asset custody across federal agencies. He said some cold wallets were reportedly stored inside desk drawers before the White House began centralizing oversight.
The review followed Trump’s March 2025 executive order establishing the Strategic Bitcoin Reserve and a separate Digital Asset Stockpile. The order directed agencies to stop selling seized bitcoin and instead preserve forfeited holdings as reserve assets.
However, Witt said the government still needs a complete inventory before releasing detailed figures publicly. He added that agencies continue separating forfeited crypto from assets tied to active legal proceedings.
Meanwhile, Bloomberg reported earlier this year that the U.S. Marshals Service investigated a possible hack involving government-controlled crypto wallets. On-chain investigator ZachXBT claimed attackers stole more than $60 million during late 2025.
Witt said the incident reinforced the need for stronger custody standards across government agencies handling digital assets.
Congress Weighs Bitcoin Reserve Legislation
While the executive order created the reserve structure, Witt said Congress must still pass legislation to formalize it permanently. He pointed to Senator Cynthia Lummis’ BITCOIN Act and Representative Nick Begich’s American Reserves Modernization Act.
According to Witt, the administration also reviewed legal questions surrounding long-term digital asset custody authority. Those discussions focused on whether agencies could retain bitcoin holdings without future congressional clawbacks.
In addition, Witt clarified that newly seized bitcoin would not automatically enter the reserve immediately. Assets connected to unresolved court proceedings remain unavailable until forfeiture concludes and restitution requirements finish.
The administration has not disclosed the total amount of bitcoin currently held by the federal government. However, estimates referenced during Consensus Miami placed holdings between 198,000 BTC and 328,000 BTC.
Reserve Structure Faces Ongoing Review
Witt said the Strategic Bitcoin Reserve and Digital Asset Stockpile remain separate structures under the executive order. Bitcoin enters the reserve, while other seized cryptocurrencies move into the broader digital asset stockpile.
According to Witt, agencies are still reviewing operational procedures before the White House releases additional details in the coming weeks.
