Treasury Secretary Scott Bessent has clarified that there can be no Bitcoin bailout.
Throughout a current congressional listening to, Congressman Brad Sherman (D-CA-32) requested Bessent whether or not or not the Treasury Division really has the authority to bail out the main cryptocurrency.
Sherman clarified that this is able to imply banks being explicitly instructed to purchase Bitcoin, or US tax {dollars} being invested to prop up the cryptocurrency
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Bessent has clarified that the US continues to retain seized Bitcoin.
The underwhelming Bitcoin treasury reserve
After the brand new administration got here to energy in late 2024, the expectation was that the US would arrange its personal Bitcoin reserve.
The White Home signed an government order to determine this reserve in Could. Nevertheless, it was extraordinarily underwhelming since it could contain solely seized cryptocurrencies.
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Final August, BTC skilled some volatility after Bessent dominated out Bitcoin purchases throughout a Fox Enterprise interview. Nevertheless, he later clarified that the Division of the Treasury didn’t fully shut the door on future purchases.
The GOP push
Sen. Cynthia Lummis has reportedly urged Bessent to transform U.S. gold reserves into Bitcoin.
Lummis, who initially launched the Bitcoin reserve invoice, lately introduced her retirement.
The failed invoice proposed to fund the acquisition of 1 million Bitcoin (roughly 5% of the entire provide) with out growing the nationwide debt or including to the taxpayer burden.
A number of states (comparable to Arizona, Utah, and Pennsylvania) are transferring ahead with their very own variations of the Strategic Bitcoin Reserve with various success.
Ruling out a CBDC
On the similar time, Treasury Secretary Bessent has acknowledged the administration has no plans to difficulty a central financial institution digital forex, assuming the Fed doesn’t both. This got here in response to pro-cryptocurrency advocate Rep. Warren Davidson, who described a CBDC as “communist cash.”