TLDR
- The U.S. Treasury Secretary said the government will not buy Bitcoin through market operations.
- Scott Bessent confirmed that he has no authority to direct private banks to purchase Bitcoin.
- The U.S. government holds over $15 billion in Bitcoin seized through asset forfeiture cases.
- President Trump’s executive order only allows Bitcoin acquisitions through seizures or budget-neutral strategies.
- The Treasury will not use banking reserve policies to influence Bitcoin purchases by financial institutions.
U.S. Treasury Secretary Scott Bessent confirmed the government will not buy Bitcoin in market operations and denied bailout authority. During a Wednesday testimony before Congress, Bessent responded to questions regarding asset acquisition and clarified Treasury’s powers. The remarks addressed growing interest in federal Bitcoin strategy and its limitations under the Trump administration’s 2025 order.
Bitcoin Retained from Seizures Rises Sharply in Value
Secretary Bessent stated the U.S. government currently holds Bitcoin gained through asset forfeiture cases and not from market purchases. He explained that seized Bitcoin had appreciated from $500 million to over $15 billion while held in custody. This increase occurred without government intervention in crypto markets.
The Bitcoin reserve exists under the strategic asset initiative signed by President Trump in March 2025. The executive order allows acquiring Bitcoin only through seizures or budget-neutral swaps, excluding direct purchases. Budget-neutral strategies convert existing assets like gold or oil into Bitcoin without adding budget expenses.
Bessent said the Treasury had explored budget-neutral options for increasing reserves in August 2025. However, he clarified this does not mean buying Bitcoin directly from markets. He emphasized that the government has not changed its stance on market acquisition.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
During the hearing, Bessent stressed that only asset seizures or swaps could legally grow Bitcoin holdings. He noted no current plans to expand the reserve through other means. Congress established limits to avoid taxpayer spending on crypto acquisitions.
Treasury Denies Bailout Power Over Bitcoin
Congressman Brad Sherman questioned Bessent on whether the Treasury could bail out Bitcoin or influence its price. Bessent responded clearly, saying, “I do not have the authority to do that.” He added that his role as FSOC chair does not give such powers.
Sherman also asked if banks would be directed to acquire Bitcoin or “Trump Coin” using reserve requirement changes. Bessent firmly denied this, stating there are no tools or authority available to do so. He said Treasury does not direct private financial institutions on asset holdings.
The hearing aimed to clarify whether federal authorities could intervene during Bitcoin market downturns. Bessent reiterated that Treasury operates under strict mandates. No emergency powers allow the government to buy or promote Bitcoin through regulation.
Sherman, known for opposing cryptocurrencies, pressed Bessent on hypothetical scenarios. Bessent repeatedly stressed that neither Treasury nor Federal Reserve members had such authority. He confirmed no plans exist to influence crypto through reserve policy.
Bitcoin Strategy Follows Trump’s Executive Order
The current strategic reserve policy originates from President Trump’s executive order from March 2025. That order defined acquisition routes for Bitcoin without adding budget costs. It restricted all purchases to budget-neutral swaps or forfeitures only.
Some in the Bitcoin community criticized the order for being too limited in scope. They wanted open market acquisitions to boost national crypto reserves. The policy, however, remained strict and legally bound.
Bitcoin advocate Samson Mow said government demand could raise Bitcoin prices. He believes other nations may follow if the U.S. buys openly. Still, the Treasury has not moved in that direction since the order’s signing.
During past briefings, Bessent mentioned studying asset swaps for reserve expansion. No updates have been made on whether such conversions occurred. All current Bitcoin held by the U.S. came from past law enforcement seizures.
