Treasury Secretary Scott Bessent Says US Has No Authority To ‘Bail Out’ Bitcoin

Treasury Secretary Scott Bessent pushed again in opposition to hypothesis round a Strategic Bitcoin reserve, making clear that the federal authorities has no authorized authority to assist or “bail out” Bitcoin (CRYPTO: BTC) utilizing public funds.

No Bitcoin Bailout Authority

Throughout a Home Monetary Providers Committee listening to on monetary stability dangers, a lawmaker questioned whether or not the U.S. authorities may assist Bitcoin by directing banks to purchase it or by deploying taxpayer funds into crypto markets.

Bessent firmly rejected the premise, stating that neither the Treasury Division nor federal regulators have the authority to compel banks to buy Bitcoin or to speculate public cash into crypto property, together with Bitcoin or so-called Trump-linked tokens.

Nevertheless, Bessent clarified that the U.S. authorities does maintain Bitcoin that has been seized via legislation enforcement actions. These holdings are handled as government-owned property, not as strategic investments or coverage instruments.

The alternate concluded with the lawmaker noting that beforehand seized Bitcoin, initially valued at roughly $500 million, has appreciated to greater than $15 billion, highlighting the size of unintended positive aspects from asset forfeitures relatively than any deliberate crypto accumulation technique.

Regulatory Management

Talking earlier on the World Financial Discussion board in Davos in January 2026, Bessent reiterated President Donald Trump’s objective of positioning the U.S. as a worldwide chief in crypto innovation via regulation relatively than market intervention.

In August 2025, Bessent additionally signaled to Wall Avenue that stablecoins backed by high-quality property equivalent to U.S. Treasuries may grow to be a significant supply of demand for presidency debt. He additionally backed the implementation of the GENIUS Act.

The initiative displays Bessent’s broader effort to modernize monetary infrastructure whereas reinforcing the Treasury market, leveraging his background as a former hedge fund supervisor and his community throughout Wall Avenue.

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