US Treasury Secretary Scott Bescent today proposed that the federal government could expand Bitcoin reserves beyond seizures by developing a budget-neutral acquisition strategy.
Bessent highlighted the importance of halting seized Bitcoin sales, arguing that maintaining digital assets could improve the US global financial leadership.
The Treasury Secretary, who appeared in CNBC’s Squawk Box, confirmed that approximately $17 billion in current US Bitcoin holdings stemmed primarily from seized criminal assets. Of this, the first seizure accounted for around $500 million, and gratitude promoted a significant increase in value.
“The first thing to do is stop selling. So… after the victim is paid, all… the seized assets enter this reserve, and then… we’ll see the future path for acquiring more of the reserves. And… we’re starting with Bitcoin, but that’s the overall crypto reserve.”
Bescent’s remarks followed President Trump’s executive order to create a strategic Bitcoin sanctuary and explicitly directed the agency to retain the confiscated Bitcoin instead of liquidating the confiscated Bitcoin. The order prompted disappointment in the market as many expected a direct government purchase of Bitcoin, leading to a short-term decline in Bitcoin prices.
The industry initially hoped that the executive order would include aggressive acquisition plans. I was hoping that this would reminisce about Senator Cynthia Ramis’ 2024 proposal to strategically buy and hold Bitcoin as a long-term investment to reduce national debt. The lack of such an explicit purchasing strategy has caused uncertainty among investors.
Will the US buy Bitcoin?
Bessent has made clear that while the administration intends to establish a structured approach to maintain and potentially expanding the cryptocurrency, it intends to emphasize that taxpayer funds will not directly fund Bitcoin acquisitions.
But when Squark Box co-host Andrew Ross Sorkin asked how Bitcoin acquisitions would take place, Bessent remains elusive.
“The first step is to stop selling, and I’m going to plan from there… I’ll go back to Washington this afternoon and then we’ll talk about the path ahead.”
Furthermore, there appears to be no current plans for purchasing Bitcoin, but I intend to do so if possible. Speaking to CNBC’s Mackenzie Sigalos, Sorkin commented.
“Do you know how to (purchase Bitcoin) without taking taxpayers? No, honestly, I say it’s because it’s the craziest thing I’ve heard of in my life.”
However, Cigaros pointed to subtle indications of the executive order that the administration remains open to investigating ways to acquire taxpayers without spending.
This approach includes further leveraging seized criminal assets, reallocating existing financial resources, and even using unused government-controlled energy to directly minify Bitcoin. She said these methods reflect internationally used strategies, such as Iran’s use of approved energy and China’s dormant mining infrastructure.
Nevertheless, Treasury Secretary Bescent has emphasized that there has not been a formal step to stop selling Bitcoin yet, and Treasury Secretary Bescent stays.
He confirmed that debate will progress at today’s crypto-centric summit in Washington, where concrete strategies to expand the reserve could emerge.
Ultimately, Bessent’s statement reflects a major shift in US policy towards recognizing Bitcoin as a viable national reserve asset.
However, implementation depends on developing financially responsible acquisition methods tailored to public and political expectations.
The broader implications of such policies, such as potential inflation hedges and increased international adoption, may remain focused in the coming months.
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