US Treasury: No Bitcoin Bailout; Seized BTC, Budget-Neutral Adds
The United States will retain Bitcoin (BTC) obtained through asset seizures but will not instruct private banks to purchase BTC in the event of market stress, Treasury Secretary Scott Bessent told Congress on Wednesday.
During an exchange with California Representative Brad Sherman, a vocal critic of cryptocurrencies, Sherman asked whether the Treasury Department or components of the Federal Open Market Committee have the authority to “bail out Bitcoin.” He further pressed whether Bessent would direct private banks to acquire more BTC or “Trump Coin” by altering banking reserve requirements. Bessent responded: “I am Secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority.”
Bessent said Bitcoin held by the U.S. government from asset forfeiture cases, initially valued at approximately $500 million, appreciated to more than $15 billion while in custody.
Secretary Bessent testifies before Congress on Wednesday. Source: CNBC
The remarks follow the Bitcoin strategic reserve initiative created by executive order in March 2025 under President Donald Trump. The measure drew criticism from some Bitcoin advocates who argued it did not go far enough.
US to acquire more Bitcoin through budget-neutral strategies only
Trump’s executive order limits additional BTC accumulation for the strategic reserve to two channels: asset forfeiture cases and budget-neutral strategies.
Budget-neutral approaches do not add line-item expenses to the federal budget and may include converting existing reserve assets — such as petroleum or precious metals — into Bitcoin. As a result, the U.S. government will not conduct open market purchases of BTC, contrary to expectations held by some in the Bitcoin community.
Source: Scott Bessent
In August 2025, Bessent said the Treasury Department was exploring acquiring BTC through budget-neutral methods, revising earlier statements. According to Bitcoin advocate Samson Mow, active government purchases would create incremental demand for BTC and could signal other countries to consider establishing their own strategic reserves.
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