TLDR
- Treasury Secretary Scott Bessent backtracked on Bitcoin buying plans within hours, first saying no new purchases then clarifying budget-neutral options remain possible
- Bitcoin dropped from $124,000 to $118,000 after Bessent’s initial comments ruling out new government purchases
- The Strategic Bitcoin Reserve currently holds $15-20 billion in confiscated Bitcoin with 198,012 coins total
- Government has been “exploring” budget-neutral Bitcoin purchase methods for five months since Trump’s March executive order
- Congressional approval may be required for the Treasury to make budget-neutral Bitcoin purchases
Treasury Secretary Scott Bessent created confusion in Bitcoin markets Thursday after contradicting his own statements about government cryptocurrency purchases within the same day. His mixed messages sent Bitcoin prices tumbling despite later attempts to clarify his position.
Bessent began Thursday by telling Fox Business that the Strategic Bitcoin Reserve would only consist of existing government holdings. He stated the reserve would use confiscated assets worth $15 billion to $20 billion but ruled out fresh purchases.
“We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” Bessent told the media outlet. His comments triggered an immediate market reaction.
Bitcoin fell sharply after these remarks, dropping from $121,073 to $118,886 within 40 minutes. The cryptocurrency had touched a new record high of $124,000 earlier in overnight trading before the selloff began.
Markets wiped nearly $55 billion off Bitcoin’s market cap following Bessent’s initial comments. The decline came at a time when Bitcoin had been reaching new price milestones.
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
Later Thursday afternoon, Bessent posted on social media platform X to clarify his position. He stated that Treasury remains “committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve.”
Government Bitcoin Holdings Continue to Grow
The Treasury Secretary confirmed the government plans to stop selling its existing Bitcoin holdings. Current government cryptocurrency assets are valued between $15 billion and $20 billion according to Bessent’s estimates.
Data from BitBo’s Bitcoin Treasuries dashboard shows the US government holds 198,012 Bitcoin worth approximately $23.5 billion. These holdings primarily come from law enforcement seizures and criminal case forfeitures.
President Trump signed an executive order in March establishing the Strategic Bitcoin Reserve. The order created both a Strategic Bitcoin Reserve and Digital Asset Stockpile using forfeited cryptocurrencies as the foundation.
The executive order allowed for additional Bitcoin purchases through budget-neutral strategies. These methods must avoid imposing costs on taxpayers while expanding government holdings.
Congressional Approval May Be Required
Treasury has been exploring budget-neutral purchase methods for five months since Trump’s executive order. However, no major developments have emerged on implementation strategies.
Senator Cynthia Lummis noted that Treasury requires congressional approval for budget-neutral Bitcoin purchases. She called on Congress to examine the BITCOIN Act she introduced in March.
Market Response and Industry Criticism
Despite Bessent’s clarification, Bitcoin continued trading around $118,500 at the time of reporting. The cryptocurrency remained well below its earlier record high following the day’s volatility.
Bitcoin industry figures criticized the Treasury’s slow progress on purchase strategies. Braiins CEO Eli Nagar questioned whether exploration without execution resembles avoidance tactics.
El Salvador Bitcoin adviser Max Keiser mocked Bessent’s continued use of the term “exploring” after months without concrete action. Industry observers expressed frustration with the pace of implementation.
Bo Hines recently exited his position as leader of the White House’s Council of Advisors on Digital Assets. His departure removes a key figure who was tasked with Strategic Bitcoin Reserve development.
The Treasury Department has not announced specific timelines for implementing budget-neutral Bitcoin purchase strategies. Congressional action may be needed before significant expansion of government cryptocurrency holdings can occur.
