US Treasury Secretary Scott Bessent told Congress on Wednesday that the government will keep Bitcoin obtained through asset seizures but will not instruct private banks to accumulate more BTC during market declines.

During the hearing, California Congressman Brad Sherman, a long-time critic of Bitcoin and digital assets, questioned whether the Treasury or the Federal Open Market Committee had the authority to support Bitcoin markets. He also asked whether private banks could be directed to acquire more BTC or “Trump Coin” by adjusting reserve rules. Bessent responded:

“I am secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority.”

Bessent also noted that roughly $500 million worth of seized Bitcoin held by the US government has appreciated to more than $15 billion while in custody. The testimony provides the latest update on the Bitcoin strategic reserve initiative created by President Donald Trump through an executive order in March 2025, a move that drew criticism from parts of the Bitcoin community who argued it did not go far enough.

Strategic reserve accumulation rules

Under the executive order, any additional Bitcoin for the strategic reserve must come only from asset forfeitures or budget-neutral strategies. These approaches avoid new federal spending and could involve converting existing reserve assets such as petroleum or precious metals into Bitcoin.

As a result, the US government is not expected to buy Bitcoin directly on the open market, contrary to expectations among some Bitcoin supporters. In August 2025, Bessent indicated that the Treasury was exploring these budget-neutral approaches, adjusting earlier remarks.

Broader implications for global reserves

Some Bitcoin advocates argue that direct government accumulation could stimulate demand for the asset, potentially influencing prices and encouraging other countries to consider establishing their own strategic Bitcoin reserves.

Sources:

https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/

https://cointelegraph.com/news/us-treasury-bessent-wont-bail-out-bitcoin

https://x.com/SecScottBessent/status/1956080030137626887

https://www.youtube.com/watch?v=-uV24FgRCZw