United States Treasury Secretary Scott Bessent addressed Congress on Wednesday, emphasizing that the US government will not intervene to rescue Bitcoin (BTC) in the event of a market downturn. During his testimony, Representative Brad Sherman of California, known for his critical stance on cryptocurrencies, questioned Bessent about the government's authority over Bitcoin. Sherman inquired if the Treasury Department or the Federal Open Market Committee could potentially bail out Bitcoin.
Bessent responded by clarifying his limitations, stating, "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."
Further into the discussion, Sherman jestingly referenced "Trump Coin," a nod to memecoins associated with former President Donald Trump, questioning whether private banks might be directed to purchase such assets. Bessent firmly stated that he would not instruct private banks to acquire more BTC or any related cryptocurrencies.
The US government's handling of Bitcoin has been a topic of discussion, especially after Trump initiated a strategic reserve for the cryptocurrency through an executive order in March 2025. Despite retaining over $15 billion worth of Bitcoin from asset seizures, the order has faced criticism from some in the Bitcoin community for not being comprehensive enough.
The executive order mandates that the US can expand its Bitcoin reserves only through asset forfeiture or budget-neutral strategies. These budget-neutral methods, which do not add to the federal budget, include converting existing reserve assets like petroleum or precious metals into Bitcoin. This approach indicates that the government will not participate in open market purchases of Bitcoin, as some Bitcoin proponents had anticipated.
In August 2025, Bessent revealed the Treasury Department's interest in acquiring BTC through budget-neutral strategies, revising earlier remarks. This move by the US government to potentially increase its BTC holdings could elevate the demand for the digital currency and influence other countries to consider establishing their Bitcoin reserves. Bitcoin advocate Samson Mow has suggested that such steps by the US could prompt other nations to preemptively secure their Bitcoin reserves.
This update from Bessent highlights the cautious yet strategic approach the US is taking regarding its Bitcoin reserves, balancing between legal constraints and market dynamics.