U.S. Treasury Secretary Scott Bessent suggested today that the federal government may expand its Bitcoin reserves beyond seizures by developing budget-neutral acquisition strategies.
Bessent emphasized the importance of halting the sale of seized Bitcoin, asserting that retaining digital assets could enhance U.S. global financial leadership.
Appearing on CNBC’s Squawk Box, the Treasury Secretary confirmed that the current U.S. Bitcoin holdings, valued at approximately $17 billion, originated primarily from seized criminal assets. Of this, initial seizures accounted for roughly $500 million, with appreciation fueling the significant increase in value.
“The first thing to do is to put It’s to stop the selling. So… after the victims are paid and all of that… any seized assets will go into this reserve, and then… we’ll see what the way forward is for more acquisitions for the reserves. And… we’re starting with Bitcoin, but it’s an overall crypto reserve.”
Bessent’s remarks followed President Trump’s executive order creating a strategic Bitcoin reserve, explicitly instructing agencies to retain confiscated Bitcoin rather than liquidate it. This order prompted disappointment in the market, as many anticipated direct government purchasing of Bitcoin, leading to a short-term decline in Bitcoin’s price.
The industry initially expected the executive order to include a proactive acquisition plan, reminiscent of Senator Cynthia Lummis’s 2024 proposal to strategically buy and hold Bitcoin as a long-term investment to reduce the national debt. The absence of such an explicit buying strategy sparked uncertainty among investors.
Will the US buy Bitcoin?
Bessent clarified that the administration intends to establish a structured approach to maintaining and potentially expanding this crypto reserve but stressed taxpayer funds would not finance Bitcoin acquisitions directly.
However, when Squark Box co-host Andrew Ross Sorkin asked how further Bitcoin acquisitions would be undertaken, Bessent remained elusive, stating,
“The first step is to stop selling. And then we’re going to put a plan in place from there… I’m going back to Washington this afternoon and then we’ll talk about the way forward.”
There appears to be no current plan for further Bitcoin purchases, but there is an intent to do so if possible. Speaking to CNBC’s MacKenzie Sigalos, Sorkin commented,
“Do you know of a way that they could [buy Bitcoin] without taking taxpayer. No, honestly, I say that because it’s just it’s It’s the craziest thing I’ve ever heard in my whole life.”
However, Sigalos noted subtle indications within the executive order that the administration remains open to exploring acquisition methods that would not involve taxpayer expenditure.
The approach could include further leveraging seized criminal assets, reallocating existing fiscal resources, and even harnessing unused government-controlled energy to mine Bitcoin directly. She mentioned that these methods echo strategies used internationally, such as Iran’s use of sanctioned energy and China’s dormant mining infrastructure.
Nevertheless, Treasury Secretary Bessent remained cautious about the immediate future, emphasizing that formal steps beyond halting Bitcoin sales are yet to be determined.
He confirmed that discussions would advance during today’s crypto-focused summit in Washington, where concrete strategies for expanding the reserve could emerge.
Ultimately, Bessent’s statements reflect a significant shift in U.S. policy toward recognizing Bitcoin as a viable national reserve asset.
Yet, implementation hinges on developing financially responsible acquisition methods that align with public and political expectations.
The broader implications of such policy, including potential inflation hedging and increased international Bitcoin adoption, will likely remain a focal point in the coming months.
The post Treasury Secretary Scott Bessent hints at future US Bitcoin reserve acquisition plans appeared first on CryptoSlate.
