During a recent hearing before the House Financial Services Committee, Treasury Secretary Scott Bessent faced pointed questions from Rep. Brad Sherman regarding the U.S. government’s potential role in supporting Bitcoin. Bessent was discussing the annual report from the Financial Stability Oversight Council, which focused on emerging economic risks and the scrutiny surrounding the Trump administration’s economic policies.
Sherman drew parallels to the 2008 financial crisis, suggesting that prior bailouts had helped protect powerful institutions in times of market turmoil. He inquired whether the Treasury or any federal regulators would consider a similar intervention for Bitcoin, such as directing banks to invest in the cryptocurrency or modifying banking regulations to facilitate greater crypto holdings.
Bessent firmly rejected these notions, stating, “I am Secretary of the Treasury. I do not have the authority to do that.” He clarified that neither the Treasury nor his role with the Economic Stability Oversight Council endows him with the power to mandate bank investments in Bitcoin or allocate public funds to crypto assets.
When asked if taxpayer funds managed by the Treasury might ever be invested in Bitcoin, Bessent reiterated that the government’s current exposure to Bitcoin was strictly through law enforcement seizures rather than any investment strategies. “We are retaining seized bitcoin,” he said, emphasizing that these assets belonged to the U.S. government. He shared that Bitcoin from past seizures has dramatically appreciated, citing an instance where about $500 million in seized Bitcoin increased in value to over $15 billion.
The conversation highlighted the significant increase in value of Bitcoin held by the government and showcased Bessent’s commitment to maintaining a cautious approach toward direct government investment in cryptocurrencies. The exchange concluded when the committee chair curtailed Sherman’s questioning time.
Earlier this year, Bessent announced that the U.S. government would halt the sale of seized Bitcoin, opting instead to include it in a Strategic Bitcoin Reserve. This strategy aims to foster digital asset innovation within the U.S. Amid ongoing discussions regarding Bitcoin seizures linked to developments involving Tornado Cash and Samourai Wallet, Bessent refrained from commenting on pending litigation but confirmed that the federal government would retain seized Bitcoin following the resolution of legal issues. He noted that selling Bitcoin would contradict Executive Order 14233, which mandates that forfeited Bitcoin be held in the U.S. Strategic Bitcoin Reserve rather than liquidated.
