U.S. Treasury Secretary Scott Bessent has hinted at potential strategies to expand federal Bitcoin holdings beyond seized assets, emphasizing a budget-neutral approach. Speaking on CNBC’s Squawk Box, Bessent stressed that halting Bitcoin sales would be the first step in strengthening the U.S. position in the global financial landscape.
He confirmed that the current federal Bitcoin reserve, valued at approximately $17 billion, primarily originates from law enforcement seizures, with an initial $500 million in confiscated assets appreciating significantly over time.
Bessent’s comments follow President Trump’s executive order establishing a strategic Bitcoin reserve, mandating agencies to retain rather than liquidate confiscated digital assets. While some investors had anticipated direct government purchases, leading to market disappointment and a temporary price drop, Bessent clarified that further acquisitions would not be funded by taxpayer dollars. Instead, alternative strategies are under discussion, including reallocating seized criminal assets, repurposing fiscal resources, and leveraging underutilized government-controlled energy for Bitcoin mining.
The idea of federal Bitcoin ownership aligns with past legislative proposals, such as Senator Cynthia Lummis’s 2024 initiative advocating for Bitcoin acquisition as a hedge against national debt. However, Bessent remained cautious about immediate steps, stating that formal policies beyond ceasing asset sales are still under review.
Discussions on Bitcoin reserve expansion will continue at today’s crypto-focused summit in Washington, where policymakers will explore financially viable acquisition methods. Bessent’s remarks signal a significant shift in U.S. policy, potentially positioning Bitcoin as a core national reserve asset. The broader implications of this strategy, including its impact on inflation hedging and global Bitcoin adoption, will remain key points of interest in the coming months.
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