Washington, D.C. – February 4, 2026. Treasury Secretary Scott Bessent faced lawmakers at a congressional hearing and drew a clear line: the Treasury Department cannot use taxpayer money to buy or "rescue" Bitcoin. "We don't have the authority to do that," Bessent said in response to a direct question.
Strategic Bitcoin Reserve: Going Budget-Neutral
Since President Trump took office in 2025, the U.S. has pushed a crypto-friendly agenda, highlighted by the creation of a Strategic Bitcoin Reserve. An executive order signed in March 2025 ended the practice of auctioning seized Bitcoin, instead keeping it as a national strategic asset. But expansion follows a budget-neutral policy — no additional purchases. Bessent first clarified this stance in August 2025 and has repeated it multiple times: the reserve will only grow through future forfeitures, or via "budget-neutral" methods that avoid new deficits or taxpayer costs. The latest hearing simply reaffirmed that position.
Bessent acknowledged Bitcoin as a 21st-century asset but stressed that fiscal law cannot be breached. Coinciding with the hearing, the Fed held rates steady, Bitcoin slipped below $90,000, and gold hit a new all-time high of $5,300. 10x Research warned that Kevin Warsh as Fed chair could spell trouble for Bitcoin.
On the state level, Tennessee is considering a bill to create its own Bitcoin strategic reserve, authorizing up to 10% of public funds for BTC purchases — a stark contrast to the federal hands-off approach.