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

News Desk
Last updated: February 7, 2026 4:10 am
News Desk
Published: February 7, 2026
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During a recent session of the House Financial Services Committee focused on financial stability, Treasury Secretary Scott Bessent addressed growing speculation regarding the possibility of a Strategic Bitcoin reserve. Bessent firmly clarified that the federal government lacks the legal authority to endorse or bail out Bitcoin using taxpayer funds or to compel banks to invest in cryptocurrency.

The questioning arose when a lawmaker speculated about the government’s ability to support Bitcoin through bank directives or public funds. Bessent emphatically rejected these ideas, stating that neither the Treasury Department nor other federal authorities have any mandate to force banks into Bitcoin purchases, nor can they allocate public assets toward cryptocurrencies, including any associated with former President Donald Trump.

However, he did note that the U.S. government does possess Bitcoin seized during law enforcement operations, indicating that these assets are categorized as government property rather than as instruments of policy or investment strategy. The seized Bitcoin, which was originally valued at around $500 million, has seen significant appreciation, now estimated at over $15 billion. This situation highlights the significant, albeit unintended, financial gains realized through asset forfeitures, rather than reflecting any organized plan to accumulate Bitcoin.

Earlier in January 2026, at the World Economic Forum held in Davos, Bessent reaffirmed President Trump’s vision of establishing the U.S. as a frontrunner in crypto innovation, advocating for regulation as a means of fostering growth rather than direct market intervention. In August 2025, he also mentioned that stablecoins backed by high-quality assets such as U.S. Treasuries could emerge as a significant source of demand for government debt. Additionally, he supported the implementation of the GENIUS Act, aimed at modernizing the financial framework while reinforcing the Treasury market—a move drawing on his experience as a hedge fund manager and connections in Wall Street.

As the conversation around diverse financial strategies continues to evolve, companies across various sectors are now seeking to offer new opportunities for investors. For instance, platforms like Rad AI are harnessing artificial intelligence to provide actionable insights for content creation, while real estate investment options such as Arrived Homes and Lightstone DIRECT are making property investment more accessible. Similarly, financial planning services like Domain Money aim to empower individuals in managing their wealth effectively.

Furthermore, Masterworks offers investors the chance to diversify their portfolios through ownership in blue-chip art, while BAM Capital focuses on multifamily real estate, targeting income and growth in emerging markets. Digital asset trading has also gained traction, with platforms like Kraken Pro providing sophisticated trading tools to enhance user experience.

As regulatory discussions continue, the financial landscape is shifting, urging investors to explore diversification through various asset classes to manage risks effectively in an evolving market environment.

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