No Bitcoin Bailout: US Treasury Clarifies Crypto Strategy

U.S. Treasury Secretary Scott Bessent has confirmed the government will not intervene to support Bitcoin in a market downturn, but it will continue to hold the vast amount of BTC acquired through asset seizures.

During a congressional hearing on Wednesday, Bessent outlined the Treasury's official stance, drawing a clear line against using public or private financial mechanisms to prop up cryptocurrency prices.

Figure 1: U.S. Treasury Secretary Scott Bessent testifies before Congress, clarifying the government's position on its Bitcoin holdings.

Treasury Secretary Rejects Market Intervention

The clarification came in response to pointed questions from California Congressman Brad Sherman, a known critic of the digital asset industry. Sherman asked if the Treasury or the Federal Open Market Committee had the authority to "bail out Bitcoin."

He further pressed Bessent on whether he would instruct private banks to acquire more Bitcoin or other cryptocurrencies, like "Trump Coin," by altering their reserve requirements.

Bessent’s response was unequivocal. "I am Secretary of the Treasury. I do not have the authority to do that," he stated. "And as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority."

During the testimony, Bessent also highlighted the massive appreciation of the government's seized crypto assets. He noted that an initial $500 million worth of confiscated Bitcoin had surged in value to over $15 billion while in U.S. custody.

The Bitcoin Strategic Reserve: A Limited Mandate

Bessent's comments provide the latest update on the U.S. Bitcoin strategic reserve, a program established by an executive order from President Donald Trump in March 2025.

The initiative has faced criticism from some within the Bitcoin community, who argue its scope is too limited and does not go far enough to position the U.S. as a leader in digital assets.

The core constraint of the executive order is how the U.S. can add to its Bitcoin stockpile. The order stipulates that the strategic reserve can only grow through two channels:

• Asset forfeiture cases

• Budget-neutral strategies

This framework prevents the government from conducting open-market operations to purchase BTC, a move many crypto proponents had hoped for.

Figure 2: A social media post from Secretary Bessent in August 2025 outlines the Treasury's exploration of budget-neutral strategies for acquiring more Bitcoin for the national reserve.

How the US Can Still Acquire More Bitcoin

The concept of "budget-neutral" acquisition means the government can obtain more Bitcoin without adding new expenses to the federal budget. This could involve converting other existing reserve assets, such as petroleum or precious metals, directly into Bitcoin.

In August 2025, Bessent signaled that the Treasury was actively exploring these methods, backtracking on earlier comments.

According to Bitcoin advocate Samson Mow, direct government buying of BTC would create significant demand, likely driving up prices. He argues such a move could also serve as a powerful signal, encouraging other nations to establish their own strategic Bitcoin reserves. However, under the current policy, the U.S. will rely solely on seizures and asset conversions to build its holdings.