The U.S. government will retain Bitcoin seized through asset forfeiture but has no plans to financially support the cryptocurrency during market downturns. Treasury Secretary Scott Bessent stated that the government will only increase its Bitcoin holdings through budget-neutral methods, such as converting existing reserves, and will not mandate banks to buy Bitcoin. This policy, established under President Donald Trump’s executive order, aims to position Bitcoin as a long-term digital asset without using taxpayer funds. The government’s current Bitcoin holdings, initially worth $500 million, have grown to over $15 billion.
U.S. Treasury Secretary Scott Bessent informed Congress that the government will keep Bitcoin seized through asset forfeiture. He clearly stated that no financial support will be provided to Bitcoin during market crashes.
California Congressman Brad Sherman questioned whether regulators could bail out Bitcoin. Bessent clarified he lacks the authority and rejected plans to require banks to purchase Bitcoin or meme coins.
The government’s seized Bitcoin was initially worth approximately $500 million. It has since appreciated to over $15 billion during custody, making the U.S. a major holder without taxpayer expense.
President Donald Trump established a national Bitcoin reserve through an executive order in March 2025. The order aimed to demonstrate Bitcoin’s long-term relevance as a digital asset.
This executive order restricted operations to only two acquisition methods: asset forfeiture or budget-neutral strategies. The government cannot use public funds for direct market purchases of Bitcoin.
Budget-neutral methods could involve converting existing reserve assets like petroleum or precious metals. This approach avoids incurring new costs for the federal budget.
In a tweet, Bessent said, “Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.” He added, “In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…”
Some Bitcoin advocates viewed this policy as a positive development. Critics, however, said it did not meet expectations for ambitiousness.
Advocates like Samson Mow argue government buying could boost demand and legitimize Bitcoin as a strategic asset. They believe U.S. accumulation might compel other nations to build their own Bitcoin reserves.
The existing policy demonstrates a cautious approach where the government holds Bitcoin but does not intervene financially. This reinforces Bitcoin’s core identity as a decentralized, market-driven asset.
