Nikolas Sargeant
Treasury Secretary Scott Bessent sparked significant market volatility yesterday when he stated during a Fox Business interview that the United States government would not be purchasing new Bitcoin for its strategic reserve. His comments led to Bitcoin dropping below the $120,000 support level, as investors interpreted the remarks as a retreat from the Trump administration's crypto-friendly stance. The Treasury Secretary emphasized that the government's current Bitcoin holdings, valued between $15 to $20 billion, consist entirely of assets seized through criminal investigations and legal forfeiture processes.
Following the immediate market reaction, Bessent quickly moved to clarify his position through social media and subsequent statements. He confirmed that while the Treasury will not engage in direct Bitcoin purchases using taxpayer funds, the department remains "committed to exploring budget-neutral pathways to acquire more" cryptocurrency for the strategic reserve. This approach would allow the government to grow its Bitcoin holdings without impacting the federal budget or requiring congressional appropriations.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…
Background: Bessent's Crypto-Friendly Confirmation
The confusion surrounding Bessent's statements comes against the backdrop of his confirmation as Treasury Secretary earlier this year, when he was hailed as a crypto-friendly appointment. The Senate confirmed the billionaire hedge fund manager with 68 votes, marking what many considered a historic shift toward cryptocurrency acceptance at the highest levels of government. Bessent, who previously served as chief investment officer for George Soros and founded Key Square Capital Management, brought substantial Bitcoin ETF holdings worth between $250,000 and $500,000 to his role.
During his Senate Finance Committee confirmation hearing, Bessent had explicitly stated he saw "no reason" to launch a Central Bank Digital Currency (CBDC), supporting Trump's executive order that banned its development. His appointment was celebrated by industry leaders, with Ripple CEO Brad Garlinghouse praising him as "an incredible leader for Americans."
Legislative Support and Regulatory Framework
Bessent's recent clarification on Bitcoin purchasing policy comes as he has been actively backing comprehensive crypto legislation in Congress. During a House Financial Services Committee hearing in May 2025, the Treasury Secretary expressed support for two pivotal cryptocurrency bills focusing on establishing comprehensive market structure and implementing robust stablecoin regulations. Bessent emphasized the importance of positioning the United States as the "premier destination for digital assets," aligning with President Trump's vision to make the U.S. the "crypto capital of the world."
The proposed legislation includes the GENIUS Act, which aims to regulate stablecoins, and a draft bill outlining a digital asset market structure. While facing some Democratic opposition, Bessent's endorsement has signaled growing momentum within the Treasury to establish a cohesive regulatory framework for digital assets.
