U.S. Treasury Secretary Bessent: Government will not "bail out" Bitcoin, nor has the authority to instruct banks to buy it

Odaily News U.S. Treasury Secretary Scott Bessent stated during a congressional hearing that the U.S. government will not "bail out" Bitcoin during market downturns, nor will it instruct private banks to purchase BTC.

In response to a question from California Representative Brad Sherman, Bessent clearly stated that neither the Treasury Department nor the Financial Stability Oversight Council (FSOC) has the authority to require banks to buy Bitcoin or so-called "Trump coins" by adjusting reserve rules.

He also mentioned that the U.S. will continue to hold Bitcoin obtained through asset forfeiture. Currently, the value of the related Bitcoin in custody has increased from approximately $500 million to over $15 billion.

Furthermore, Bessent reiterated that the U.S. Bitcoin strategic reserve will only increase its holdings through asset forfeiture or "budget-neutral" methods and will not directly purchase Bitcoin on the open market. (Cointelegraph)