US Treasury Has No Authority To ‘Bail Out’ Bitcoin
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The comments came during Bessent’s congressional testimony on Wednesday in a tense exchange with California Representative Brad Sherman. United States Treasury Secretary Scott Bessent testified before Congress on Wednesday and reiterated that the US will retain Bitcoin (BTC) acquired through asset seizures but will not direct private banks to purchase more BTC in the event of a market downturn. California Congressman Brad Sherman, a major critic of Bitcoin and cryptocurrencies, asked Bessent: “Does the Treasury Department or the various components of the Federal Open Market Committee have the authority to bail out Bitcoin?” Sherman then asked Bessent if he plans to direct private banks to acquire more BTC or “Trump Coin,” a reference to memecoins connected to US President Donald Trump, through changing banking reserve requirements to allow them to buy more. Bessent said: “I am secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority.” Secretary Bessent testifies before Congress on Wednesday. Source: CNBC Bessent added that the $500 million in seized Bitcoin retained by the US government had surged to over $15 billion while in custody. The testimony is the latest update on the Bitcoin strategic reserve initiative, which was established by Trump through an executive order in March 2025. However, the order has drawn backlash from some in the Bitcoin community, who say it did not go far enough. Related: DOJ didn’t sell Bitcoin forfeited from Samourai case: White House advisor US to acquire more Bitcoin through budget-neutral strategies only Trump’s executive order stipulated that the US could only acquire more BTC for the strategic reserve through asset forfeiture cases or budget-neutral strategies. Budget-neutral methods do not add line-item expenses to the US budget and include converting other existing…
Filed under: News - @ February 5, 2026 5:25 pm