Treasury Says It Lacks Authority to Bail Out Bitcoin

Reporting by Beincrypto indicates the U.S. Treasury says it lacks authority to bail out Bitcoin, leaving investors to bear the full downside risk. At a House Financial Services Committee hearing, Rep. Brad Sherman pressed Treasury Secretary Scott Bessent on whether the department could step in to “bail out Bitcoin,” including directing banks to buy Bitcoin or using taxpayer dollars.

Bessent asked for clarification on what “bail out Bitcoin” meant and said, “I am Secretary of the Treasury. I do not have the authority to do that, and as chair of FSOC [the Financial Stability Oversight Council], I do not have that authority.” Bessent noted a different form of government exposure: seized Bitcoin holdings retained through law enforcement actions.

“One billion of Bitcoin was seized, 500 million was retained, and that 500 million has become over 15 billion,” he said, illustrating passive gains from confiscated assets rather than active market intervention. The hearing also included a heated exchange when Rep.

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