Patrick Witt says US government needs Congressional approval to buy Bitcoin
Former White House Crypto Council director Patrick Witt said the Trump administration is exploring ways to build a Strategic Bitcoin Reserve while avoiding a legislative backlash.
Key takeaways
- 1Patrick Witt said the US government needs explicit Congressional authorisation to buy Bitcoin.
- 2President Donald Trump is interested in adding to the government's Bitcoin holdings.
- 3The administration aims to codify a Strategic Bitcoin Reserve through legislation.
- 4Witt warned that moving prematurely could lead to a ban via the National Defense Authorization Act.
Patrick Witt, the former executive director of the White House Crypto Council, said on 10 November that the US government requires explicit authorisation from Congress to legally purchase Bitcoin. Speaking in an interview, Witt said the administration is looking for ways to add to its current holdings but faces legal hurdles regarding open-market acquisitions.
President Donald Trump is interested in building a formal Bitcoin position for the country, Witt said. Officials have discussed several methods for the government to buy the asset while minimising the impact on market prices. Witt said the administration is considering how to execute these trades without triggering a negative reaction from the broader market. This includes evaluating the timing and size of potential purchases to avoid volatility.
The administration wants to codify a Strategic Bitcoin Reserve to ensure the policy remains stable across different political terms. The requirement for Congressional approval stems from the fact that Congress controls federal appropriations. Witt said the administration would need to demonstrate that buying Bitcoin falls within the original purpose of any existing funds used for the purchase. Because the US Constitution grants the legislative branch the power of the purse, the President cannot unilaterally spend money on new asset classes without a specific budget line.
Witt warned that moving too quickly without legislative backing could prompt a backlash from lawmakers. He said Congress might respond by inserting a provision into the National Defense Authorization Act to specifically ban Bitcoin purchases. Such a move would undermine the broader effort to secure formal authorisation and establish the reserve.
The US government is already one of the largest holders of Bitcoin, though its current supply is almost entirely composed of assets seized during criminal investigations. Establishing a strategic reserve would mark a transition from holding confiscated funds to actively managing Bitcoin as a national financial asset. Witt said the administration is focused on securing the legal framework to make this change permanent and legally sound.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.