U.S. Treasury Secretary Scott Bessent told Congress that the Treasury will keep Bitcoin it acquires through seizures but cannot force private banks to buy Bitcoin to prop up the market. The remarks came during a tense exchange Wednesday with California Representative Brad Sherman, a long-standing critic of cryptocurrencies.
Sherman asked whether the Treasury or any arm of the Federal Open Market Committee had the power to “bail out Bitcoin.” He pressed further, suggesting the Treasury could direct banks to buy more Bitcoin or memecoins tied to former President Donald Trump by altering reserve requirements. Bessent answered plainly that he lacks that authority both as Treasury secretary and as chair of the Financial Stability Oversight Council.
Bessent also highlighted the dramatic appreciation of government-held crypto: roughly $500 million in Bitcoin seized by U.S. authorities has grown in value to more than $15 billion while in custody.
The hearing revisited issues around the U.S. strategic Bitcoin reserve created by an executive order signed in March 2025. That order permits the government to increase its Bitcoin holdings only through asset forfeiture or budget-neutral mechanisms — for example, converting existing reserve assets such as petroleum or precious metals into Bitcoin — and does not authorize direct open-market purchases of BTC.
In August 2025, Bessent indicated the Treasury was exploring budget-neutral approaches to add Bitcoin to the reserve, a shift from earlier statements. The possibility of direct Treasury or central-bank purchases divided observers: some in the Bitcoin community hoped such buying would support prices, while critics argued the executive order fell short. Advocates have warned active U.S. purchasing might boost demand and encourage other nations to establish their own strategic Bitcoin reserves.
The discussion also touches on how the government handles forfeited crypto in specific cases, such as the Samourai matter, and the broader policy and market implications of a U.S. strategic reserve.
This report aims to summarize the congressional exchange and related developments. Readers are encouraged to consult primary sources and official records for full context and verification.