The US Treasury will safeguard what it already holds but will not act as a buyer of last resort for Bitcoin markets
The US Treasury Department has clarified its role in the government’s Bitcoin strategic reserve during a recent congressional hearing. Treasury Secretary Scott Bessent told lawmakers that the federal government will keep Bitcoin obtained through asset seizures, but has no plans to support the market through direct purchases.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
During the session, California Representative Brad Sherman pressed Bessent on whether Treasury or other financial authorities could step in to support Bitcoin during a sharp downturn. Sherman also asked if private banks could be encouraged to buy more Bitcoin by adjusting reserve rules. Bessent said those powers do not exist within his office or the Financial Stability Oversight Council.
Bessent noted that roughly $500 million worth of seized Bitcoin held by the government has grown significantly in value over time. According to his testimony, those holdings are now valued at more than $15 billion, reflecting Bitcoin’s long-term price growth while under federal control.
The remarks come as part of ongoing discussion around the Bitcoin strategic reserve created by an executive order signed by President Donald Trump in March 2025. The initiative allows the US to hold Bitcoin as a reserve asset but limits how additional coins can be acquired.
Under the order, the government may only add to its Bitcoin holdings through asset forfeitures or so-called budget-neutral strategies. These include converting existing reserve assets, such as commodities, into Bitcoin without increasing federal spending. Direct market purchases are off the table.
That restriction has frustrated some Bitcoin supporters who hoped for open-market buying. Still, advocates argue that even holding Bitcoin sends a signal. Samson Mow and others believe government involvement could influence global adoption if other countries follow a similar path.
