Bessent: No Taxpayer Money for Bitcoin Bailout
On July 2, 2026, Treasury Secretary Scott Bessent testified before the House Financial Services Committee regarding the Financial Stability Oversight Council's annual report on emerging economic risks. Representative Brad Sherman, referencing the 2008 financial crisis bailouts, pressed Bessent on whether the Treasury or federal regulators could take similar action for bitcoin—such as ordering banks to buy BTC or altering banking rules to encourage crypto holdings.
Bessent categorically rejected the premise. 'I am Secretary of the Treasury. I do not have the authority to do that,' he stated, clarifying that neither the Treasury nor his role as chair of the Economic Stability Oversight Council provides power to direct banks to invest in BTC or allocate public funds into crypto assets. When Sherman asked about taxpayer funds being deployed into BTC, Bessent emphasized that the government's current BTC exposure comes solely from law enforcement seizures, not investment decisions.
U.S. to Stop Selling Seized Bitcoin, Build Strategic Reserve
Bessent confirmed that the U.S. government will retain seized bitcoin rather than liquidating it. 'We are retaining seized bitcoin. That is an asset of the U.S.,' he said. He noted that retained bitcoin from past seizures has appreciated significantly over time, citing a case where roughly $500 million in seized BTC later grew to more than $15 billion in value. This underscores bitcoin's potential upside even as policymakers remain cautious about direct government involvement.
Earlier this year, Bessent stated at the World Economic Forum in Davos that the U.S. government plans to stop selling seized BTC and instead add it to the Strategic Bitcoin Reserve. He framed this as part of a broader effort to bring digital-asset innovation back to the U.S. The comments came amid questions about BTC seizures tied to Tornado Cash and Samourai Wallet developers. While declining to discuss active litigation, Bessent stressed that seized BTC will be retained by the federal government once legal damages are resolved.
Executive Order 14233 Bars Bitcoin Sales
Any sale of bitcoin would contradict Executive Order 14233, which mandates that forfeited bitcoin be held in the U.S. Strategic Bitcoin Reserve rather than liquidated. Bessent's testimony reinforces the administration's shift from 'seize and sell' to 'seize and hold' as a strategic asset. The Treasury confirmed that all seized bitcoin will ultimately flow into the reserve, ensuring the U.S. government maintains a substantial crypto holding without deploying taxpayer money.