US Treasury Secretary Scott Bessent stated that the US government cannot use taxpayer money to financially support Bitcoin. He made these remarks during testimony before the House Financial Services Committee, where he outlined government policies related to Bitcoin. Committee member Representative Brad Sherman inquired whether the government could provide financial assistance to Bitcoin during a market crisis, similar to the bailouts of major institutions during the 2008 financial crisis. He asked if the Treasury or financial regulators could mandate banks to purchase Bitcoin or amend banking laws to encourage cryptocurrency. Secretary Bessent categorically dismissed these possibilities, stating that the government lacks such authority.
Bessent clarified that the government’s current interest in Bitcoin is limited to Bitcoin seized by law enforcement agencies, which is not considered an investment. He revealed that the government initially held about $500 million worth of seized Bitcoin, which has grown to over $15 billion, reflecting a potential increase in Bitcoin’s value despite policymakers opposing direct government intervention. Previously, at the World Economic Forum in Davos, Bessent announced that the government would incorporate seized Bitcoin into a strategic Bitcoin reserve to promote the development of digital assets rather than sell them. This approach aligns with a US executive order directing the preservation, not sale, of seized Bitcoin.
This stance emerges amid ongoing global debates regarding the legal and financial status of cryptocurrencies, as governments seek to clarify their policies in this emerging financial sector.
Source: bitcoinmagazine
