In a recent House Financial Services Committee hearing, Treasury Secretary Scott Bessent firmly stated that the U.S. government will not "bail out" Bitcoin. Bessent's remarks came in response to questioning from Representative Brad Sherman, who drew parallels to the 2008 financial crisis and inquired whether the Treasury or federal regulators could intervene to support Bitcoin in a similar fashion. Sherman specifically asked if the government could direct banks to purchase Bitcoin or alter banking regulations to incentivize cryptocurrency holdings.
Bessent rejected this possibility, emphasizing that neither the Treasury Department nor his position as chair of the Economic Stability Oversight Council grants him the authority to order banks to invest in Bitcoin or allocate public funds to crypto assets. "I am Secretary of the Treasury. I do not have the authority to do that," Bessent stated. He clarified that the government's involvement with Bitcoin is currently limited to assets seized through law enforcement actions, not investment decisions.
Bessent highlighted the appreciation in value of seized Bitcoin, noting that approximately $500 million in retained BTC has grown to over $15 billion. This appreciation underscores Bitcoin's potential upside, even as policymakers remain hesitant about direct government involvement.
Despite rejecting a bailout, Bessent has previously indicated a strategic interest in Bitcoin. Earlier this year at the World Economic Forum in Davos, Switzerland, Bessent spoke about the Trump administration's commitment to establishing the U.S. as a leader in cryptocurrency and digital asset innovation. He mentioned the administration's plan to create a Strategic Bitcoin Reserve. In line with this, Bessent stated that the U.S. government's stance is to cease selling seized Bitcoin and instead add it to this reserve. This policy aligns with President Trump's executive order mandating that forfeited Bitcoin be held in the U.S. Strategic Bitcoin Reserve rather than being liquidated.
Bessent has also clarified that the Treasury Department is exploring "budget-neutral pathways" to acquire more Bitcoin to expand the reserve. However, he did not address questions regarding the approximately $6 million in Bitcoin seized in connection with the Samourai Wallet developers case. A White House crypto advisor, Patrick Witt, stated that the Bitcoin had not been liquidated, which is consistent with Trump's strategic Bitcoin reserve decision.
The concept of a Strategic Bitcoin Reserve signifies a growing recognition of Bitcoin's potential value within government financial strategies. While the U.S. government appears unwilling to use taxpayer funds to directly support Bitcoin's price, it is actively exploring ways to leverage seized assets and foster a regulatory environment that encourages digital asset innovation. Bessent's remarks suggest a nuanced approach, balancing skepticism towards direct intervention with a forward-looking view on the role of cryptocurrency in the U.S. financial landscape.