U.S. Treasury Secretary Scott Bessent reiterated during congressional testimony on Wednesday that the United States will not step in to support Bitcoin during market downturns, nor will it instruct private banks to purchase the cryptocurrency.
The remarks came during a tense exchange with California Representative Brad Sherman, a long-time critic of Bitcoin and digital assets. Sherman questioned whether the Treasury Department or bodies such as the Federal Open Market Committee had the authority to bail out Bitcoin in the event of a market collapse.
He also asked whether Bessent planned to direct private banks to acquire more Bitcoin—or so-called “Trump Coin,” a reference to memecoins associated with U.S. President Donald Trump—by adjusting banking reserve requirements.
Bessent firmly rejected the idea, saying he lacked the authority to take such action. He added that even in his role as chair of the Financial Stability Oversight Council, he does not have the power to mandate bank purchases of cryptocurrencies.
The Treasury secretary confirmed that the U.S. government continues to hold Bitcoin obtained through asset seizures. He noted that roughly $500 million worth of seized Bitcoin has grown to more than $15 billion while under government custody.
The testimony follows ongoing discussion around the U.S. Bitcoin strategic reserve, which was established by executive order signed by President Trump in March 2025. The initiative has faced criticism from parts of the Bitcoin community, with some arguing that it falls short of expectations.
Under the executive order, the U.S. government is permitted to add to its Bitcoin reserves only through asset forfeitures or budget-neutral strategies. These approaches do not involve new federal spending and could include reallocating existing reserves, such as petroleum or precious metals, into Bitcoin.
As a result, the U.S. government will not purchase Bitcoin through open market operations, a move many crypto advocates had anticipated.
In August 2025, Bessent said the Treasury was exploring budget-neutral avenues to expand Bitcoin holdings, softening earlier comments on the issue.
Bitcoin proponents argue that direct government purchases would boost demand, potentially lifting prices and encouraging other countries to create their own strategic Bitcoin reserves. Samson Mow, a prominent Bitcoin advocate, has said such moves could have far-reaching implications for global adoption.
