US Treasury Secretary Scott Bessent told Congress the US cannot run a Bitcoin bailout. He spoke during Wednesday testimony, during a tense exchange with Representative Brad Sherman of California.
Sherman asked if the Treasury Department, or parts tied to the Federal Open Market Committee, had authority to “bail out Bitcoin.” He then shifted to whether Bessent could direct private banks to buy Bitcoin.
Bessent answered with a direct quote.
“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.”
Seized Bitcoin Holdings Stay With US, Bessent Says
Bessent said the US will keep seized Bitcoin already in government custody. He said the government will not direct private banks to buy Bitcoin during a market downturn.
He also gave a value update tied to those seized Bitcoin holdings. Bessent said $500 million in seized Bitcoin grew to more than $15 billion while held by the US government.
Reports tied that statement to a broader discussion of past federal seizures and custody. The exchange aired in coverage linked to CNBC clips and summaries of the hearing.
Strategic Bitcoin Reserve Rules Limit New Bitcoin Buys
The hearing comments linked back to the Strategic Bitcoin Reserve created by President Donald Trump through an executive order dated March 6, 2025. The White House said the US will not sell Bitcoin placed into the reserve.
Under the order, the reserve builds from Bitcoin obtained through criminal or civil asset forfeiture. The policy framework focuses on consolidating federally held Bitcoin rather than selling it.
The order also sets a limit for expanding the Strategic Bitcoin Reserve. It allows more Bitcoin only through forfeiture or through budget neutral strategies that impose no added cost to taxpayers.
Budget neutral strategies Define How Treasury Can Add Bitcoin
The phrase budget neutral strategies matters because it narrows the government’s options. It points to methods that do not add new spending lines to the federal budget.
In the same policy framework, the White House authorized the Secretaries of Treasury and Commerce to develop those budget neutral strategies. However, the language did not describe an open market buying program.
That setup shaped the exchange with Brad Sherman. When Sherman asked about directing banks to acquire more Bitcoin, Bessent pointed to his lack of authority, including in his role as FSOC chair.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: February 5, 2026 • 🕓 Last updated: February 5, 2026
