United States Treasury Secretary Scott Bessent told lawmakers on Wednesday that the US government will retain Bitcoin obtained through asset seizures but has no authority to intervene directly in markets or compel banks to buy the digital asset during downturns.
Bessent made the comments while testifying before Congress, as scrutiny grows around the federal government’s approach to Bitcoin following the creation of a strategic reserve earlier this year.
During the hearing, California Congressman Brad Sherman, a long-standing critic of cryptocurrencies, pressed Bessent on whether federal institutions could step in to support Bitcoin during a severe market decline.
“Does the Treasury Department or the various components of the Federal Open Market Committee have the authority to bail out Bitcoin?” Sherman asked.
Treasury Rejects Direct Market Intervention
Sherman went further by asking whether Scott Bessent could direct private banks to acquire more Bitcoin, or even politically themed tokens such as “Trump Coin,” by adjusting banking reserve requirements.
Bessent firmly rejected the suggestion, making clear that neither his role nor his additional responsibilities give him such powers.
“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.”
His testimony underscored that any notion of a government-led Bitcoin rescue or forced accumulation by private banks is not part of current US policy.
Scott Bessent also revealed that the roughly $500 million worth of Bitcoin originally seized by federal authorities has appreciated dramatically, rising to more than $15 billion while held in government custody.
Strategic Bitcoin Reserve Remains Limited In Scope
The comments represent the latest update on the US Bitcoin strategic reserve, which was established through an executive order signed by President Donald Trump in March 2025.
While the initiative marked a historic shift in federal recognition of Bitcoin as a strategic asset, it has drawn criticism from parts of the Bitcoin community who expected a more aggressive accumulation strategy.
Trump’s order explicitly restricts how the US can expand its Bitcoin holdings, limiting acquisitions to asset forfeiture cases or so-called budget-neutral strategies.
Budget-neutral approaches involve reallocating existing government assets, such as petroleum reserves or precious metals, into Bitcoin without increasing federal spending.
As a result, the US government will not purchase Bitcoin through open market operations, dashing hopes among some investors that federal buying could provide a consistent source of demand.
Signals To Markets And Global Governments
In August 2025, Bessent indicated that the Treasury was exploring budget-neutral pathways to expand Bitcoin holdings, walking back earlier remarks that suggested no further acquisitions were being considered.
Bitcoin advocates argue that even limited government involvement can have outsized effects on market psychology and International policy decisions.
According to Bitcoin supporter Samson Mow, active accumulation by the US government could lift prices while encouraging other nation-states to establish their own strategic reserves.
For now, Bessent’s testimony suggests Washington intends to maintain a cautious, constrained approach, holding seized Bitcoin but stopping well short of becoming an active market participant.