Treasury Secretary Scott Bessent has clarified that there will be no Bitcoin bailout.
During a recent congressional hearing, Congressman Brad Sherman (D-CA-32) asked Bessent whether or not the Treasury Department actually has the authority to bail out the leading cryptocurrency.
Sherman clarified that this would mean banks being explicitly instructed to buy Bitcoin, or US tax dollars being invested to prop up the cryptocurrency
Bessent has clarified that the US continues to retain seized Bitcoin.
The underwhelming Bitcoin treasury reserve
After the new administration came to power in late 2024, the expectation was that the US would set up its own Bitcoin reserve.
The White House signed an executive order to establish this reserve in May. However, it was extremely underwhelming since it would involve only seized cryptocurrencies.
Last August, BTC experienced some volatility after Bessent ruled out Bitcoin purchases during a Fox Business interview. However, he later clarified that the Department of the Treasury did not completely shut the door on future purchases.
The GOP push
Sen. Cynthia Lummis has reportedly urged Bessent to convert U.S. gold reserves into Bitcoin.
Lummis, who initially introduced the Bitcoin reserve bill, recently announced her retirement.
The failed bill proposed to fund the purchase of 1 million Bitcoin (roughly 5% of the total supply) without increasing the national debt or adding to the taxpayer burden.
Several states (such as Arizona, Utah, and Pennsylvania) are moving forward with their own versions of the Strategic Bitcoin Reserve with varying success.
Ruling out a CBDC
At the same time, Treasury Secretary Bessent has stated the administration has no plans to issue a central bank digital currency, assuming the Fed does not either. This came in response to pro-cryptocurrency advocate Rep. Warren Davidson, who described a CBDC as “communist money.”
Alex Dovbnya
Denys Serhiichuk
Gamza Khanzadaev
Caroline Amosun