During a congressional hearing, Scott Bessent, the Treasury Secretary, reiterated the US government’s position regarding Bitcoin. He stated that although the US holds Bitcoin seized from various assets, it does not plan to encourage private banks to buy Bitcoin in response to market downturns.

In a discussion with Congressman Brad Sherman, who is a known critic of Bitcoin, Bessent was questioned on whether he had the authority to implement a bailout for Bitcoin. Bessent clarified:

“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.”

This year, the Treasury has seen the value of approximately $500 million in seized Bitcoin rise to over $15 billion. This statement comes amid ongoing discussions about the Bitcoin strategic reserve initiative initiated by a previous executive order by President Trump.

He also expressed that the acquisition of Bitcoin will only happen through budget-neutral strategies or asset forfeitures, thereby ruling out the possibility of buying Bitcoin from open markets, which many in the cryptocurrency community had anticipated.