US Treasury Secretary Scott Bessent has sparked debate after delivering mixed signals on whether the government plans to increase its strategic Bitcoin reserve. In initial remarks to Fox Business, Bessent said the administration has no plans to purchase more cryptocurrency, but confirmed the U.S. will retain confiscated Bitcoin and continue building reserves through asset seizures.
From No Purchases to Policy Shift Consideration
Bessent’s early comments seemed to shut the door on fresh market purchases, noting the reserve currently valued between $15 billion and $20 billion would be expanded only via seized digital assets. This includes Bitcoin from high-profile cases such as the Silk Road takedown and the Bitfinex hack.
Hours later, however, his tone shifted. Bessent stated the Treasury is exploring “budget-neutral” strategies to acquire more Bitcoin without tapping taxpayer funds. Such methods could involve swaps, revenue from forfeitures, or other non-budgetary mechanisms.
Reserve’s Current Standing
External estimates place U.S. government Bitcoin holdings at roughly 198,000 BTC, worth about $23 billion, though not all coins are officially designated as part of the strategic reserve. The March 2025 executive order establishing the reserve forbids the sale of these assets and encourages exploring ways to grow the stockpile without impacting the federal budget.
Market and Policy Implications
- Policy signals: The evolving stance reflects a balancing act between fiscal discipline and positioning the U.S. as a long-term Bitcoin holder.
- Crypto market impact: Official interest in expanding reserves could bolster sentiment and attract institutional flows, but inconsistent messaging may also fuel short-term volatility.
- Strategic positioning: Maintaining and potentially increasing Bitcoin reserves aligns with broader efforts to diversify national assets and adapt to digital finance trends.
As the Treasury weighs its options, markets will be watching closely for concrete action and whether “budget-neutral” acquisitions can meaningfully increase the U.S. Bitcoin reserve.
Source: WSJ, CoinDesk, The Verge, DLNews, Investors.com
