TL;DR
- Treasury Secretary Scott Bessent told Congress that the federal government has no legal authority to bail out Bitcoin.
- The response followed a question from Representative Brad Sherman about a potential intervention by the Treasury or the FOMC to support Bitcoin.
- Bessent explained that the Treasury holds seized bitcoins, now valued at more than $15 billion, and that the reserve can only grow through forfeitures or budget-neutral mechanisms.
U.S. Treasury Secretary Scott Bessent confirmed before Congress that the federal government has no authority to bail out Bitcoin or to order private banks to buy BTC in a market-collapse scenario. The remarks were made during a hearing focused on the legal scope of the Treasury and the financial system in relation to crypto assets.
The exchange was prompted by a question from California Representative Brad Sherman, a long-time critic of Bitcoin and cryptocurrencies. Sherman asked whether the Department of the Treasury or bodies linked to the Federal Open Market Committee could intervene to support Bitcoin. He also questioned whether the Treasury planned to instruct private banks to acquire BTC or tokens associated with Donald Trump through changes to bank reserve requirements.
Bessent made the Treasury’s role regarding Bitcoin very clear
Bessent replied that he does not have such authority, either in his capacity as Treasury Secretary or as chair of the Financial Stability Oversight Council. He stated that the government cannot direct private purchases of Bitcoin or use the banking system as a tool to prop up the market. The clarity of his answer ruled out any possibility of direct or indirect intervention to support the price of BTC.
Bessent also addressed the bitcoins held by the U.S. government. The Treasury holds coins obtained through asset seizures in forfeiture cases. According to his remarks, those assets increased in value from approximately $500 million to more than $15 billion while under government custody. The government will retain those bitcoins but will not expand its holdings through open-market purchases.
Swapping oil or precious metals for Bitcoin
The statements fall under the strategic Bitcoin reserve initiative established by an executive order signed by Donald Trump in March 2025. That order set clear limits on how the state may acquire BTC. The framework allows Bitcoin to be added only through judicial forfeitures or through budget-neutral strategies.
Budget-neutral strategies do not involve additional federal spending. Options under consideration include converting other assets already held in the reserve, such as oil or precious metals, into Bitcoin. The regulatory framework explicitly excludes the purchase of BTC through open-market operations.
In August 2025, Bessent had said that the Treasury was evaluating neutral methods to increase the reserve. His appearance before Congress confirms that this review does not include bailouts, forced purchases, or interventions to support Bitcoin
