During his testimony on Wednesday, Scott Bessent, the United States Treasury Secretary, confirmed that the government would retain Bitcoin (BTC) gained from asset seizures, which has risen in value from $500 million to over $15 billion. However, he clarified that the Treasury will not instruct private banks to purchase more BTC, particularly in any market downturns.
Congressman Brad Sherman, known for his opposition to cryptocurrencies, questioned Bessent about the Treasury's authority regarding Bitcoin bailouts and the potential acquisition of "Trump Coin." Bessent responded firmly, asserting that he lacks the authority to direct private banks in these matters.
The testimony also touched on the strategic reserve initiative established by a 2025 executive order from former President Trump. This order mandates that the US can only acquire additional BTC through asset forfeiture or budget-neutral strategies, which do not impact the federal budget. As such, the government will not engage in open market purchases of Bitcoin, a decision that has disappointed some members of the Bitcoin community.