US Treasury to Hold Seized Bitcoin but Won’t Buy More, Bessent Tells Congress
United States Treasury Secretary Scott Bessent told lawmakers on Wednesday that the federal government will continue holding Bitcoin obtained through asset seizures but does not have the authority to direct private banks to purchase the digital asset during market downturns.
Bessent’s remarks came during congressional testimony in response to questions from California Congressman Brad Sherman, a long-time critic of cryptocurrencies.
Sherman asked whether the Treasury Department or the Federal Open Market Committee had the power to “bail out Bitcoin” and whether Bessent intended to change banking reserve requirements to encourage banks to buy Bitcoin or politically themed tokens.
“I am Secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council, I do not have that authority,” Bessent said.
The exchange highlighted ongoing political divisions in Washington over how the United States should approach its Bitcoin holdings, which have grown significantly in value over time.
According to Bessent, approximately $500 million worth of seized Bitcoin held by the government has appreciated to more than $15 billion while in federal custody.
Strategic Reserve Still Limited to Seizures and Neutral Methods
Bessent’s testimony provided the latest update on the government’s Bitcoin strategic reserve initiative, created through an executive order signed by President Donald Trump in March 2025. The order formalized the idea of a federal Bitcoin reserve but imposed strict limits on how additional coins could be acquired.
Under the directive, the United States can only expand its Bitcoin holdings through asset forfeitures or “budget-neutral” strategies. These methods are designed to avoid adding new line-item expenses to the federal budget.
Budget-neutral approaches could include converting portions of existing reserve assets, such as petroleum holdings or precious metals, into Bitcoin. However, the order explicitly prevents the government from buying Bitcoin directly on the open market with taxpayer funds.
That restriction disappointed some BTC advocates, who had hoped the executive order would establish a more aggressive accumulation strategy. Supporters of the asset argued that direct government purchases could strengthen Bitcoin’s global legitimacy and encourage other nations to adopt similar reserve policies.
Treasury Signals Cautious Approach
Bessent previously indicated in August 2025 that the Treasury Department was exploring budget-neutral methods to increase the country’s Bitcoin reserves. His latest testimony reinforces the administration’s cautious stance, emphasizing legal constraints and fiscal neutrality over active market intervention.
The secretary’s comments also addressed concerns that the government might attempt to support Bitcoin prices during periods of market stress. Sherman’s line of questioning suggested fears that regulators could use banking policy or reserve requirements to indirectly prop up the asset.
Bessent rejected that possibility, stressing that neither the Treasury nor the Financial Stability Oversight Council has the authority to mandate such actions.
