Treasury Secretary Scott Bessent says the US will not bail out Bitcoin or order banks to buy BTC during market declines.
The United States government will not intervene to support Bitcoin during market downturns, according to Treasury Secretary Scott Bessent.
Speaking before Congress, Bessent said federal authorities lack both the power and intent to rescue Bitcoin or force banks to buy it.
Treasury Rejects Bitcoin Bailout Authority
Bessent made the remarks during congressional testimony on Wednesday.
The exchange took place with California Representative Brad Sherman, a long-time critic of Bitcoin.
Sherman asked whether the Treasury or financial regulators could step in to support Bitcoin prices.
Bessent responded that no such authority exists. He said, “I am secretary of the Treasury.
I do not have the authority to do that.” He also noted that the Financial Stability Oversight Council lacks that power.
Treasury Secretary Scott Bessent says he does not have the “authority” to bail out bitcoin. pic.twitter.com/zhu38S0hUL
— Yahoo Finance (@YahooFinance) February 4, 2026
Sherman also asked whether banks could be directed to buy Bitcoin through changes in reserve rules. Bessent rejected the idea.
He said neither the Treasury nor the council could instruct private banks to purchase Bitcoin or related tokens.
US Bitcoin Holdings and Strategic Reserve Policy
The United States holds Bitcoin obtained through asset seizures.
Bessent told lawmakers that seized Bitcoin worth about $500 million has grown to over $15 billion while in government custody.
🚨BREAKING🚨
Treasury Secretary Scott Bessent defends the US having a Strategic Bitcoin Reserve:
“That is an asset of the US government. The asset seizure, that $1 billion of bitcoin was seized, $500 million was retained. And that $500 million has become over $15 billion.” pic.twitter.com/woNyIbkg11
— cryptothedoggy (@cryptothedoggy) February 4, 2026
These holdings form part of the US Bitcoin strategic reserve. The reserve was created through an executive order signed by President Donald Trump in March 2025.
The order outlined how the government may manage digital assets.
The order allows Bitcoin acquisition only through asset forfeitures or budget-neutral methods. It does not allow open market purchases.
This framework limits how the government can expand its Bitcoin holdings.
Limits on Future Bitcoin Acquisitions
Budget-neutral strategies avoid new spending. These methods may include converting existing reserves into Bitcoin.
Examples include petroleum or precious metals held by the government.
Because of these limits, the US will not buy Bitcoin directly from the market. Some Bitcoin supporters had expected government purchases to boost demand.
The policy removes that possibility for now.
In August 2025, Bessent said the Treasury was studying budget-neutral options. That statement reversed earlier comments that ruled out further Bitcoin acquisition.
The review did not change the ban on market buying.
**Related Reading: **Critic Schiff Mocks Saylor’s 855 BTC Purchase as Bitcoin Slips Below $78K
Debate Over Government Role in Bitcoin Markets
Some Bitcoin advocates argue that government buying could support prices. They also say it could encourage other countries to create similar reserves.
Samson Mow has said state participation could influence global adoption.
Others remain cautious. Critics in Congress continue to question Bitcoin’s role in financial markets.
Sherman has repeatedly warned about risks linked to cryptocurrencies.
Bessent’s testimony confirmed the current stance. The US will keep seized Bitcoin, but it will not rescue the market.
The Treasury maintains that private markets must set Bitcoin prices without federal support.
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