U.S. Treasury Secretary Scott Bessent stated the government will not direct banks to purchase Bitcoin or bail out the cryptocurrency. During a congressional hearing, Bessent confirmed that seized BTC, now worth over $15 billion, will be held in the Strategic Bitcoin Reserve established by an executive order from President Donald Trump.
U.S. Treasury Secretary Scott Bessent reiterated the limits of federal Bitcoin policy in a hearing. He stated the government will hold seized BTC but not order private banks to buy it.
Congressman Brad Sherman questioned whether authorities could bail out Bitcoin or direct bank purchases. Bessent explained he lacks the authority to issue such directives.
Bessent noted seized Bitcoin has appreciated sharply while in government custody. The original $500 million in seized BTC is now valued at over $15 billion.
The update pertains to the Strategic Bitcoin Reserve created by an executive order from President Donald Trump. The order allows for BTC acquisitions through open market purchases and asset forfeiture.
Bessent said all seized cryptocurrency will now be added to this reserve. The Treasury is exploring budget-neutral methods to obtain more BTC.
Bitcoin advocate Samson Mow said increased government reserves could boost demand. He noted the move is part of a broader effort to support U.S. Bitcoin innovation.
