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Treasury Secretary Scott Bessent pushed back against speculation around a Strategic Bitcoin reserve, making clear that the federal government has no legal authority to support or "bail out" Bitcoin (CRYPTO: BTC) using public funds.
During a House Financial Services Committee hearing on financial stability risks, a lawmaker questioned whether the U.S. government could support Bitcoin by directing banks to buy it or by deploying taxpayer funds into crypto markets.
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Bessent firmly rejected the premise, stating that neither the Treasury Department nor federal regulators have the authority to compel banks to purchase Bitcoin or to invest public money into crypto assets, including Bitcoin or so-called Trump-linked tokens.
However, Bessent clarified that the U.S. government does hold Bitcoin that has been seized through law enforcement actions. These holdings are treated as government-owned assets, not as strategic investments or policy tools.
The exchange concluded with the lawmaker noting that previously seized Bitcoin, originally valued at roughly $500 million, has appreciated to more than $15 billion, highlighting the scale of unintended gains from asset forfeitures rather than any deliberate crypto accumulation strategy.
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Speaking earlier at the World Economic Forum in Davos in January 2026, Bessent reiterated President Donald Trump's goal of positioning the U.S. as a global leader in crypto innovation through regulation rather than market intervention.
In August 2025, Bessent also signaled to Wall Street that stablecoins backed by high-quality assets such as U.S. Treasuries could become a meaningful source of demand for government debt. He also backed the implementation of the GENIUS Act.
The initiative reflects Bessent's broader effort to modernize financial infrastructure while reinforcing the Treasury market, leveraging his background as a former hedge fund manager and his network across Wall Street.
