Treasury Secretary Scott Bessent has made it clear that there will be no financial rescue for Bitcoin.
During a recent session before Congress, Representative Brad Sherman (D-CA-32) questioned Bessent about whether the Treasury Department holds the power to bail out the leading cryptocurrency.
Sherman specified that such a bailout would involve either mandating banks to purchase Bitcoin or using U.S. taxpayer funds to support the digital asset.
Bessent confirmed that the United States government continues to hold onto seized Bitcoin assets.
The Disappointing Bitcoin Treasury Reserve
Following the new administration’s rise to power in late 2024, many anticipated that the U.S. would create its own official Bitcoin reserve.
In May, an executive order was signed by the White House aiming to establish this reserve; however, it proved underwhelming as it only included cryptocurrencies obtained through seizures.
Last August saw some price fluctuations in BTC after Bessent dismissed any plans for purchasing Bitcoin during an interview with Fox Business. Nonetheless, he later clarified that future acquisitions were not entirely off the table for the Treasury Department.
The GOP Initiative
Senator Cynthia Lummis has reportedly encouraged Bessent to convert part of America’s gold reserves into Bitcoin holdings.
Lummis, who initially proposed legislation for creating a national Bitcoin reserve, recently announced her retirement from politics.
The unsuccessful bill aimed at acquiring one million Bitcoins—approximately five percent of total supply—without increasing national debt or imposing additional taxes on citizens.
A number of states including Arizona, Utah, and Pennsylvania are independently pursuing their own versions of Strategic Bitcoin Reserves with varying degrees of progress and success.
Dismissing Central Bank Digital Currency Plans
Treasury Secretary Bessent also stated that neither his administration nor presumably the Federal Reserve plans on issuing a central bank digital currency (CBDC). This statement responded directly to pro-crypto lawmaker Representative Warren Davidson who criticized CBDCs as “communist money.”