At press time, Bitcoin [BTC] was hovering near the key $70,000 level, drawing significant attention in the U.S. Congress.
During a review of the FSOC’s 2025 report, Treasury Secretary Scott Bessent faced sharp questioning on crypto and its impact on financial stability.
While testifying before the House Financial Services Committee, Secretary Bessent came under pressure from Representative Brad Sherman, a well‑known critic of crypto. Sherman pressed him on whether the government could, or would, intervene to “bail out” Bitcoin if its price collapsed.
This tense exchange underscored a broader debate: should Bitcoin be left entirely to the free market, or should it be treated as a strategic asset that the U.S. government may need to safeguard?
What was said?
Rep. Sherman asked,
“Could you instruct the banks of this country to buy more Bitcoin or change banking regulations so that they’re encouraged to do so in terms of the reserves that they’re otherwise required to have?”
To which Bessent replied,
“I am secretary of the treasury. I do not have the authority to do that and as chair of FSOC I do not have that authority.”
Tensions escalated when Sherman pressed for a direct yes‑or‑no answer on whether taxpayer money would ever be used to support a declining crypto market.
Rather than responding directly, Secretary Bessent redirected the discussion to the administration’s broader strategy.
He defended the Strategic Bitcoin Reserve, emphasizing that it is not a financial burden but a national security asset designed to strengthen America’s role in the digital economy.
Bessent replied,
“We are retaining seized Bitcoin. That’s not exactly taxpayer money. That is an asset of the US. It’s an asset of the US.”
By doing so, Bessent made it clear that the Treasury sees Bitcoin as an important part of the U.S. financial system, one it plans to support through policy, not bailouts.
Bessent confirmed during the hearing that the seized Bitcoin had gone up in value.
He said,
“Of that $1 billion in Bitcoin that was seized, $500 million was retained, and that $500 million has become over $15 billion,”
Trump’s pro-crypto stance takes centre stage
For the administration and its supporters, including Chairman French Hill and Representative Andy Barr, the growth in crypto-related assets shows that their pro-growth policies are working. However, Democrats ended the session with strong criticism.
Ranking Member Maxine Waters said the administration’s policies favor Wall Street over ordinary Americans. Overall, Democrats accused Treasury Secretary Bessent of dismissing serious warnings about possible market risks.
In contrast, Republicans defended the administration.
Chairman French Hill praised deregulation and strong economic data, while Bessent said lighter rules would support innovation and small banks.
Overall, Republicans supported “tailored” regulations, arguing that smaller banks should not be treated the same as large global institutions and stressing the need to strengthen the commercial banking sector.
Final thoughts
- Treasury Secretary Bessent’s defense of seized Bitcoin signals a shift toward treating digital assets as strategic reserves.
- Democrats’ warnings reflect lingering fears of repeating past financial crises.