U.S. Treasury Secretary Scott Bessent told Congress on Wednesday that his department has no authority to bail out Bitcoin or instruct private banks to purchase the cryptocurrency in the event of a market collapse.
Direct congressional grilling
Bessent made the statement during testimony before Congress in response to questioning from California Representative Brad Sherman, a Bitcoin and crypto critic. Sherman asked whether the Treasury Department or components of the Federal Open Market Committee possess the power to bail out Bitcoin, and whether Bessent plans to direct private banks to acquire Bitcoin or Trump-linked memecoins through changes to banking reserve requirements.
“I am Treasury Secretary. I do not have the authority to do that, and as chairman of the Financial Stability Oversight Council (FSOC), I do not have such authority,” Bessent stated, according to the testimony.
Seized Bitcoin ballooned 30-fold
Bessent confirmed that the United States will maintain bitcoins acquired through asset seizures. He said the $500 million in bitcoin seized and held by the U.S. government has increased to over $15 billion while in custody.
The testimony provided an update on the Bitcoin strategic reserve initiative, which Trump established through an executive order in March 2025. The order stipulates that the U.S. can acquire additional Bitcoin for the reserve only through asset forfeiture cases or budget-neutral strategies.
Executive order limits government buying
Budget-neutral methods do not add expenses to the U.S. budget and include converting existing reserve assets, such as oil or precious metals, into Bitcoin. This restriction means the U.S. government will not acquire additional Bitcoin through open market operations.
In August 2025, Bessent had stated the Treasury Department was exploring budget-neutral acquisition of Bitcoin, but the latest testimony sets clearer boundaries on what the government can and cannot do.