The US Treasury Secretary rules out the possibility of government "bailing out" Bitcoin; government confiscated Bitcoin has appreciated to $15 billion

Recently, US Treasury Secretary Scott Bessent stated at a congressional hearing that the federal government has explicitly ruled out the possibility of "bailing out" Bitcoin during market downturns.

He emphasized that neither the Treasury nor the Financial Stability Oversight Council (FSOC) has the authority to require private banks to buy more Bitcoin to support its price.

This statement effectively responds to previous market speculation about government intervention in cryptocurrency prices, thereby establishing the US official stance of a "no rescue" policy amid Bitcoin market volatility.

Meanwhile, Bessent also disclosed that the Bitcoin seized through law enforcement actions by the US government has skyrocketed in value from an initial approximately $500 million to over $15 billion, fully demonstrating the significant appreciation of government-held crypto assets during market cycles.

He further clarified that, according to the presidential executive order signed by Trump in March 2025, this order delineates policy red lines that limit the government's direct use of funds to intervene in the market.

In this context, the legitimate ways for the government to increase strategic cryptocurrency reserves are strictly limited to two methods: one is through asset confiscation; the other is implementing a budget-neutral swap strategy (i.e., exchanging assets such as national reserves of oil or precious metals) to acquire Bitcoin.

However, this policy framework has sparked very different reactions within the Bitcoin community. Critics argue that relying on confiscation and swap-based passive accumulation is insufficient and cannot provide the market with strong official endorsement like active Bitcoin purchases.

Supporters, on the other hand, believe that the US government's proactive establishment and public disclosure of Bitcoin strategic reserves have a powerful demonstrative effect, potentially encouraging many countries worldwide to establish their own crypto reserves.

In the long run, this global official reserve race is expected to fundamentally reshape Bitcoin's supply and demand dynamics, thereby having a more profound impact on global Bitcoin demand and prices.

#ScottBessent #Government Stance