Treasury Secretary Scott Bessent Tells Congress Bitcoin Cannot Be Bailed Out

• Bessent said Treasury has no authority to buy or bail out Bitcoin and taxpayer funds cannot be used for crypto support.

• All U.S. Bitcoin exposure comes from seized assets, with about $500M retained that later grew to over $15B.

• Lawmakers remain divided, as some propose using gold reserves while critics reject Bitcoin as a strategic asset.

Treasury Secretary Scott Bessent told U.S. lawmakers that Bitcoin will not receive government support or taxpayer funding. He spoke Wednesday during a House Financial Services Committee hearing in Washington. The exchange followed questions from Representative Brad Sherman about possible federal intervention, existing Bitcoin holdings, and the limits of Treasury authority under current law.

Treasury Pushes Back on Bitcoin Bailout Questions

During testimony tied to the Financial Stability Oversight Council’s annual report, Sherman questioned whether Treasury could support Bitcoin during market stress. He asked if Bessent could direct banks to buy Bitcoin or adjust reserve rules to favor crypto holdings.

However, Bessent rejected the idea directly. He stated that neither Treasury law nor his role as FSOC chair allows such actions. He added that taxpayer funds cannot be used to purchase Bitcoin or other crypto assets.

Sherman then asked whether private bank funds could be treated as taxpayer money if regulators intervened. Bessent pushed back, asking why private capital would be classified as public funds. The exchange grew tense before shifting toward existing government-held Bitcoin.

Seized Bitcoin Forms Entire U.S. Exposure

Sherman later asked whether Treasury could deploy collected taxes into crypto markets. Bessent responded that the government only retains Bitcoin seized through criminal forfeitures. He emphasized that seized Bitcoin remains an asset of the United States.

To illustrate scale, Bessent cited roughly $1 billion in seized Bitcoin. He said about $500 million was retained. Notably, he added that retained Bitcoin later appreciated to more than $15 billion in value.

Bessent clarified that these holdings resulted from law enforcement actions, not investment decisions. He stressed that Treasury has no authority to buy Bitcoin directly under current law.

Lawmakers Debate Future Bitcoin Policy Paths

While Bessent rejected purchases, some lawmakers continue exploring alternatives. Senator Cynthia Lummis has suggested using U.S. gold reserves to acquire Bitcoin. She previously said she discussed that idea with Bessent.

Meanwhile, critics responded publicly. Economist Peter Schiff commented on X following President Donald Trump’s crypto statements. Schiff argued Bitcoin should not replace traditional reserves and said China focuses instead on gold and manufacturing.

Earlier this year, Bessent said the U.S. would stop selling seized Bitcoin. Speaking at the World Economic Forum in Davos, he said forfeited BTC would move into a Strategic Bitcoin Reserve.