White House Confirms No Bitcoin Sold From Samourai Case as Coinbase CEO Warns Banks Undermining Crypto Agenda

DOJ Confirms Samourai Bitcoin Remains in Strategic Reserve

The White House has received official confirmation from the U.S. Department of Justice that digital assets forfeited from the Samourai Wallet case have not been sold and will not be liquidated, according to Patrick Witt, Executive Director of the White House President's Council of Advisors for Digital Assets ^[1].

Witt shared the confirmation on social media platform X on Friday, stating that the forfeited Bitcoin would remain part of the Strategic Bitcoin Reserve ^[1].

The clarification came after concerns emerged in November when blockchain analysts identified a 57.5 Bitcoin transfer from a government-controlled address to a Coinbase Prime deposit address ^[1]. The transfer led to accusations that the Marshals Service had violated Executive Order 14233, signed by President Donald Trump in March, which mandates that Bitcoin obtained through criminal or civil forfeiture "shall not be sold" and must be held in the Strategic Bitcoin Reserve ^[1].

U.S. Government Bitcoin Holdings Exceed $31 Billion

According to data from Bitcoin Treasuries, the U.S. government currently holds 328,372 Bitcoin, valued at over $31.3 billion at current market prices ^[1]. This figure includes 127,271 Bitcoin forfeited in October from a Cambodia-based company that allegedly operated a "pig butchering" crypto investment scheme ^[1].

In an interview published on Tuesday, Witt indicated that building out the Strategic Bitcoin Reserve remains on the "priority list" and will advance once the Treasury and Commerce agencies reach agreement on certain legal requirements ^[1]. The Bitcoin reserve bill sponsored by U.S. Senator Cynthia Lummis aims to accelerate this process, seeking to accumulate one million Bitcoin over five years ^[1]. The government has stated its strategy would focus on accumulating Bitcoin through budget-neutral methods without taxpayer costs ^[1].

Coinbase CEO Raises Alarm Over Senate Banking Draft

Meanwhile, Coinbase CEO Brian Armstrong has publicly criticized proposed changes to Senate market structure legislation, warning they could undermine President Trump's pro-crypto agenda. In an interview with Fox Business anchor Maria Bartiromo on Mornings With Maria, Armstrong accused major U.S. banks of attempting to sabotage crypto innovation ^[2].

"After reviewing the Senate Banking draft over the last 48 hours, Coinbase unfortunately can't support this bill as written," Armstrong stated, citing provisions that would effectively ban tokenized securities, impose broad prohibitions on decentralized finance, weaken the Commodity Futures Trading Commission, and eliminate rewards on stablecoins ^[2].

While praising broader Senate efforts led by Senators Tim Scott and Cynthia Lummis, Armstrong characterized the draft text as raising "dangerous" issues that would be difficult to remedy once the bill reached the Senate floor ^[2].

Stablecoin Rewards Emerge as Central Battleground

Armstrong particularly contested provisions affecting stablecoin rewards, arguing that recent legislation including the GENIUS Act signed under President Trump explicitly enabled stablecoin issuers to pay yield ^[2].

"The banks are really coming and trying to undermine the president's crypto agenda," Armstrong said. "They're trying to protect their own profit margins, taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits" ^[2].

Armstrong emphasized that stablecoins under the GENIUS Act must be backed fully by short-term U.S. Treasuries, contrasting them with traditional fractional-reserve banking. "There is no fractional reserve with these stablecoins," he explained. "They should not be subject to the same regulation as banks" ^[2].

The Coinbase CEO also criticized Senate language that would subordinate the CFTC to the Securities and Exchange Commission, requiring crypto assets to pass through the SEC before potentially falling under CFTC jurisdiction ^[2]. He contrasted this approach with the House-passed CLARITY Act, which clearly delineates oversight between digital commodities and securities ^[2].

Despite his concerns, Armstrong expressed optimism that lawmakers could revise the Senate bill, while issuing a clear warning: "It's better to have no bill than a bad bill" ^[2].