The U.S. government has drawn a line against intervening to prop up Bitcoin prices during sharp declines, a stance reiterated at a House Financial Services Committee hearing. The remarks came as part of testimony by Treasury Secretary Scott Bessent. Scott Bessent said that while the government will retain Bitcoin seized through asset forfeiture, it will not direct private banks to purchase additional Bitcoin during market downturns.
Under the administration’s executive order, the U.S. government cannot buy Bitcoin directly in the open market, and additions must come via asset forfeiture or budget-neutral methods. This effectively blocks expectations that the government would actively defend prices. Bessent previously indicated in August that the Treasury was exploring budget-neutral means to secure Bitcoin.
Bitcoin proponents argued that active purchases could spur demand and signal that other countries may stockpile. Bessent’s comments reinforce that the government is not the final defense for Bitcoin’s market. The administration reaffirmed the principle of not intervening directly to defend market prices, maintaining that seized assets will be held but not deployed to stabilize markets.
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