Treasury Secretary Scott Bessent says the US is not going to bail out Bitcoin or order banks to purchase BTC throughout market declines.
The USA authorities is not going to intervene to assist Bitcoin throughout market downturns, based on Treasury Secretary Scott Bessent.
Talking earlier than Congress, Bessent mentioned federal authorities lack each the facility and intent to rescue Bitcoin or pressure banks to purchase it.
Treasury Rejects Bitcoin Bailout Authority
Bessent made the remarks throughout congressional testimony on Wednesday.
The alternate passed off with California Consultant Brad Sherman, a long-time critic of Bitcoin.
Sherman requested whether or not the Treasury or monetary regulators might step in to assist Bitcoin costs.
Bessent responded that no such authority exists. He mentioned, “I’m secretary of the Treasury.
I shouldn’t have the authority to do this.” He additionally famous that the Monetary Stability Oversight Council lacks that energy.
Treasury Secretary Scott Bessent says he doesn’t have the “authority” to bail out bitcoin. pic.twitter.com/zhu38S0hUL
— Yahoo Finance (@YahooFinance) February 4, 2026
Sherman additionally requested whether or not banks might be directed to purchase Bitcoin by way of adjustments in reserve guidelines. Bessent rejected the concept.
He mentioned neither the Treasury nor the council might instruct non-public banks to buy Bitcoin or associated tokens.
US Bitcoin Holdings and Strategic Reserve Coverage
The USA holds Bitcoin obtained by way of asset seizures.
Bessent advised lawmakers that seized Bitcoin value about $500 million has grown to over $15 billion whereas in authorities custody.
🚨BREAKING🚨
Treasury Secretary Scott Bessent defends the US having a Strategic Bitcoin Reserve:
“That’s an asset of the US authorities. The asset seizure, that $1 billion of bitcoin was seized, $500 million was retained. And that $500 million has turn into over $15 billion.” pic.twitter.com/woNyIbkg11
— cryptothedoggy (@cryptothedoggy) February 4, 2026
These holdings kind a part of the US Bitcoin strategic reserve. The reserve was created by way of an government order signed by President Donald Trump in March 2025.
The order outlined how the federal government could handle digital property.
The order permits Bitcoin acquisition solely by way of asset forfeitures or budget-neutral strategies. It doesn’t enable open market purchases.
This framework limits how the federal government can develop its Bitcoin holdings.
Limits on Future Bitcoin Acquisitions
Funds-neutral methods keep away from new spending. These strategies could embrace changing present reserves into Bitcoin.
Examples embrace petroleum or valuable metals held by the federal government.
Due to these limits, the US is not going to purchase Bitcoin instantly from the market. Some Bitcoin supporters had anticipated authorities purchases to spice up demand.
The coverage removes that chance for now.
In August 2025, Bessent mentioned the Treasury was finding out budget-neutral choices. That assertion reversed earlier feedback that dominated out additional Bitcoin acquisition.
The assessment didn’t change the ban on market shopping for.
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Debate Over Authorities Position in Bitcoin Markets
Some Bitcoin advocates argue that authorities shopping for might assist costs. Additionally they say it might encourage different international locations to create related reserves.
Samson Mow has mentioned state participation might affect world adoption.
Others stay cautious. Critics in Congress proceed to query Bitcoin’s function in monetary markets.
Sherman has repeatedly warned about dangers linked to cryptocurrencies.
Bessent’s testimony confirmed the present stance. The US will hold seized Bitcoin, nevertheless it is not going to rescue the market.
The Treasury maintains that personal markets should set Bitcoin costs with out federal assist.