Treasury Secretary Scott Bessent defended the U.S. government’s retention of seized Bitcoin as a strategic national security asset during a congressional hearing. Facing pointed questions from Representative Brad Sherman, Bessent stated he lacked authority to direct banks to buy Bitcoin and clarified that taxpayer funds would not bail out the crypto market. He revealed that $500 million in seized Bitcoin has appreciated to over $15 billion, highlighting a significant policy debate in Washington.
During a review of the Financial Stability Oversight Council’s 2025 report, Treasury Secretary Scott Bessent faced sharp questioning on cryptocurrency’s financial stability impact. Representative Brad Sherman, a known crypto critic, pressed him on potential government intervention.
Sherman asked if he could instruct banks to buy more Bitcoin or change regulations to encourage it. Bessent replied, “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.”
Sherman later demanded a yes-or-no answer on using taxpayer money to support a declining crypto market. Bessent redirected, defending the seized Bitcoin as a national security asset designed to strengthen America’s digital economy role.
He clarified the government’s position, stating, “We are retaining seized Bitcoin. That’s not exactly taxpayer money. That is an asset of the US.” Bessent confirmed the seized assets’ substantial appreciation during the exchange.
He stated, “Of that $1 billion in Bitcoin that was seized, $500 million was retained, and that $500 million has become over $15 billion.” For the administration and supporters like Chairman French Hill, this growth validates pro-growth policies.
Democrats, including Ranking Member Maxine Waters, ended the session with strong criticism. They accused the administration of favoring Wall Street and dismissing serious market risk warnings.
In contrast, Republicans defended the administration’s approach. They praised deregulation and argued for “tailored” regulations to support innovation and smaller banks.
