U.S. Treasury Secretary Scott Bessent told lawmakers that the federal government has no legal authority to bail out Bitcoin or order banks to purchase cryptocurrencies. The statement came as Bitcoin dropped nearly 8% over 24 hours, falling to its lowest level since early November 2024.
Treasury and FSOC cannot support Bitcoin with public funds
During a House Financial Services Committee hearing, Representative Brad Sherman of California asked whether the Treasury Department or the Financial Stability Oversight Council could use taxpayer money to support Bitcoin during a market downturn. Bessent answered directly that neither office has that power.
“I am Secretary of the Treasury, I do not have the authority to do that, and as chair of FSOC, I do not have that authority,” Bessent said. His testimony made clear that while the U.S. government may keep Bitcoin obtained through legal forfeitures, it cannot require banks to buy BTC and cannot invest U.S. tax dollars in crypto assets.
Seized Bitcoin holdings rose sharply in value
Bessent also said the U.S. government’s seized Bitcoin holdings, once worth about $500 million, have climbed to more than $15 billion while in custody. He did not present that as a policy tool, but as a fact about assets already held by the government.
Lawmakers also pressed him on World Liberty Financial
Bessent faced questions about World Liberty Financial, a crypto and decentralized finance venture linked to President Donald Trump. Representative Gregory Meeks asked him to commit to pausing and intensifying review of any bank charter or license application connected to the project until possible conflicts of interest and foreign influence are fully examined and shared with Congress.
Bessent declined. He said the Office of the Comptroller of the Currency, which would handle banking charter approvals, is an independent regulator and is not controlled by the Treasury Department.
Bitcoin sell-off deepens as risk appetite weakens
The testimony landed during a broad crypto market sell-off. Bitcoin fell almost 8% in the last 24 hours, with broader macroeconomic concerns and shifting risk appetite adding to the pressure. Bessent’s remarks drew a firm line: even if market losses deepen, the Treasury does not have the legal room to stage a Bitcoin rescue using public money.