US Treasury’s Scott Bessent Clarifies: Strategic Bitcoin Reserve Purchases Still on the Table

US Treasury Secretary Scott Bessent has moved to reassure markets and crypto advocates that the department remains committed to acquiring Bitcoin for the country’s Strategic Bitcoin Reserve despite a comment earlier in the day that sent shockwaves through the crypto markets.

Bitcoin Market Volatility Follows Confusing Signals

On Thursday, Bessent initially told FOX Business that the Treasury was “not going to be buying” more Bitcoin, but rather would continue to build up the reserve using assets confiscated from criminal cases. This statement was interpreted by traders as a halt to the much-discussed Bitcoin purchase plan, triggering a sharp sell-off that wiped nearly $55 billion off Bitcoin’s total market capitalization in less than an hour. The price tumbled from $121,073 to $118,886, according to CoinGecko data.

Later that day, Bessent clarified his remarks via social media, stating,

“Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world.’”

He reiterated that seized or forfeited BTC will continue to provide the foundation for the nation’s Bitcoin reserve.

Market and Community React with Skepticism

While Bessent’s clarification stabilized Bitcoin near $118,500, some in the crypto community remain skeptical. Industry leaders, like Braiins CEO Eli Nagar, noted the lack of concrete action:

“Are you seriously still ‘exploring budget-neutral pathways’? At some point, exploration without execution starts to look like avoidance.”

This frustration has been brewing for months, as the Treasury’s promise to find cost-neutral ways of buying Bitcoin has yet to result in tangible purchases.

The Budget-Neutral Challenge

President Trump’s March 6 executive order established the Strategic Bitcoin Reserve and a Digital Asset Stockpile, both of which initially rely on crypto assets forfeited to the federal government. The order encouraged Treasury to look for “budget-neutral” strategies to further build the reserve methods that wouldn’t increase costs for US taxpayers. Ideas floated include repurposing gold certificates or reallocating tariff revenue, but the administration’s most recent crypto report failed to reveal any actionable progress or a clear path forward.

A complicating factor is Congress: For the Treasury to purchase Bitcoin using innovative funding mechanisms, legislative approval is likely needed. Senator Cynthia Lummis has pressed for Congressional action on her bipartisan BITCOIN Act, designed to expand federal Bitcoin reserves, and she’s called for lawmakers to address Treasury’s statutory limits.

US Treasury Freezes Government Bitcoin Sales

Regardless of the slow pace on new purchases, Bessent confirmed that the Treasury will no longer liquidate its existing Bitcoin stockpile.

“We’re going to stop selling,” he told FOX Business, estimating that the current reserve is valued between $15 billion and $20 billion.

According to BitBo’s Bitcoin Treasuries dashboard, the US government presently holds 198,012 BTC, worth approximately $23.5 billion.

Will the US Be Outpaced?

The delays have raised concerns that other countries could move more aggressively, securing a first-mover advantage in strategic Bitcoin reserves. Crypto pundits warn that America’s hesitance could allow rivals to front-run the US, catching up or even surpassing its holdings if acquisition efforts remain sluggish.

Key Takeaways

• US Treasury is still exploring budget-neutral Bitcoin purchases, not abandoning the strategy.
• Earlier miscommunication caused a sharp Bitcoin price drop, but reassurances stabilized the market.
• Congressional approval may be required for more innovative acquisition methods.
• The US government will stop selling its existing Bitcoin reserve, estimated at nearly 200,000 BTC.
• Crypto leaders call for more action and less talk, warning the US risks falling behind as other nations adopt Bitcoin strategies.

The fate of America’s Strategic Bitcoin Reserve now hinges on swift legislative alignment and turning policy promises into real market action. As global Bitcoin adoption accelerates, the US faces mounting pressure to deliver on its “Bitcoin superpower” vision.