Treasury Secretary Bessent Rules Out Bitcoin Bailout by US Government
During Wednesday's Congressional hearing, Bessent engaged in a contentious discussion with Representative Brad Sherman of California regarding government intervention in cryptocurrency markets.
During his Wednesday appearance before Congress, United States Treasury Secretary Scott Bessent confirmed that the US government plans to keep Bitcoin (BTC) obtained via asset seizures while making clear that he will not instruct private banking institutions to purchase additional BTC should cryptocurrency markets experience a downturn.
Brad Sherman, a California Congressman known for his strong opposition to Bitcoin and digital currencies, posed a question to Bessent: "Does the Treasury Department or the various components of the Federal Open Market Committee have the authority to bail out Bitcoin?"
The Congressman proceeded to question whether Bessent intended to direct private banking institutions to purchase more BTC or "Trump Coin," referring to memecoins associated with US President Donald Trump, by modifying banking reserve requirements to permit such acquisitions. 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."
The Treasury Secretary also noted that approximately $500 million worth of confiscated Bitcoin held by the US government has grown to a value exceeding $15 billion during the period of government custody.
This testimony represents the most recent development concerning the Bitcoin strategic reserve program, which President Trump initiated via executive order in March 2025. The order, however, has received criticism from certain members of the Bitcoin community, who believe it falls short of expectations.
US to acquire more Bitcoin through budget-neutral strategies only
The executive order issued by Trump specified that the US would be permitted to obtain additional BTC for the strategic reserve exclusively through asset forfeiture proceedings or strategies that are budget-neutral.
Strategies considered budget-neutral are those that do not create additional line-item expenses within the US budget and may include the conversion of other existing reserve assets, including petroleum or precious metals, into Bitcoin.
The implication is that the US government will refrain from purchasing additional BTC through open market operations, contrary to the expectations of many within the Bitcoin community.
During August 2025, Bessent stated that the Treasury Department is investigating the possibility of obtaining BTC through budget-neutral approaches, walking back earlier statements.
According to Bitcoin advocate Samson Mow, active purchases of BTC by the US government would generate demand for the digital asset, which could drive up prices and potentially encourage other nation-states to create their own strategic reserves.