In a recent hearing before the House Financial Services Committee, U.S. Treasury Secretary Scott Bessent faced intense scrutiny regarding the government”s role in overseeing Bitcoin as its price experiences a significant downturn. Following a steep decline of nearly 25%, bringing the value of BTC close to $60,000, questions arose about the potential for government intervention to stabilize the cryptocurrency market.
During this contentious session, Rep. Brad Sherman (D-CA) inquired whether the Treasury Department or the Federal Open Market Committee possesses the authority to implement a bailout for Bitcoin. Bessent firmly responded, “I do not have that authority,” emphasizing that even as chair of the Financial Stability Oversight Council, he lacks the power to compel private banks to purchase additional BTC or other cryptocurrencies, including the recently launched “Trump Coin.”
In March 2025, an executive order signed by former President Donald Trump established a strategic reserve of Bitcoin, composed of tokens forfeited through government asset seizures. Bessent noted that this reserve, initially valued at $500 million, has appreciated significantly to over $15 billion while under government custody.
Despite the lack of authority to orchestrate a bailout, Bessent reiterated the government”s commitment to augmenting its Bitcoin holdings through budget-neutral strategies that do not rely on taxpayer funds. However, specific plans for these acquisitions were not disclosed during the hearing.
Among the budget-neutral avenues mentioned previously are potential adjustments in the Treasury”s gold certificates and tariff revenue. The possibility of government purchases of Bitcoin remains a topic of speculation, as such actions could generate substantial demand for the cryptocurrency, potentially influencing its market price and prompting other nations to consider establishing their own strategic reserves of BTC.
As the market continues to grapple with volatility, the implications of Bessent”s statements resonate strongly within the cryptocurrency community, highlighting the tension between regulatory oversight and market autonomy.
