A heated debate over a Bitcoin reserve erupted on Capitol Hill today as U.S. Treasury Secretary Scott Bessent told lawmakers the U.S. government does not plan to buy BTC with taxpayer funds. The exchange occurred during a House Financial Services Committee hearing, as Rep. Brad Sherman pressed him on a government intervention for Bitcoin. However, Bessent said the current law gives him no authority to “bail out Bitcoin.”
Treasury Rejects BTC Purchases Despite Bitcoin Reserve Plans
During testimony tied to the Financial Stability Oversight Council’s annual report, Sherman asked if the Treasury could support Bitcoin during market turmoil. He questioned whether Bessent could order U.S. banks to buy Bitcoin or change reserve rules to encourage BTC holdings. However, Bessent replied that he does not have that authority.
Sherman also asked if taxpayer dollars could be invested in Bitcoin or even the top Solana meme coin, TRUMP coin. Bessent responded that neither his role as Treasury Secretary nor his position as FSOC chair allows such action. When Sherman warned against public funds entering crypto markets, Bessent challenged him, asking why private bank funds would be treated as taxpayer money.
As the exchange continued, Sherman shifted focus to Treasury-controlled assets and asked if the government would deploy collected taxes into crypto. Treasury Secretary Bessent responded that the government is only retaining seized Bitcoin. Sherman argued that seized assets differ from tax revenue, but Bessent said the Bitcoin remains an asset of the United States.
Bessent then cited past forfeitures to show the scale of retained holdings. He said $1 billion worth of Bitcoin had been seized, with $500 million retained. He added that the retained amount later grew in value to over $15 billion.
GOP Senators Push Gold Reserves Idea
Even as Bessent rejected direct BTC purchases, some GOP senators continue to explore ways to expand Bitcoin exposure. Senator Cynthia Lummis has suggested the Treasury could buy Bitcoin using U.S. gold reserves. She told reporters last year she raised that option with Bessent and said she would support action under existing executive authority.
However, critics also weighed in on the Bitcoin situation. Economist and Bitcoin critic Peter Schiff responded on X after referencing President Donald Trump’s public support for crypto. Schiff wrote that Trump wants the U.S. to become the Bitcoin capital of the world to compete with China.
Schiff added that China’s leadership is “too smart” to prioritize Bitcoin and instead focuses on factories and gold purchases. After an X user noted the U.S. government has not bought any Bitcoin, Schiff replied that the government is still misdirecting resources into Bitcoin and crypto. He also said that such capital allocation harms the U.S. economy. Notably, Schiff recently stated that Bitcoin would never be the reserve currency even as he continued to make a case for gold over BTC.
Rep. Meeks Raises World Liberty Financial Concerns
Additionally, Rep. Gregory Meeks raised questions about World Liberty Financial. Meeks cited remarks from World Liberty Financial founder, Eric Trump. Meeks quoted Eric Trump’s statements, saying he would not disclose investors but claimed he had “meaningful investors.”
This is not the only criticism of the firm. Senator Elizabeth Warren asked for an investigation into the UAE Royal entity’s deal with World Liberty Financial. Meeks then alleged that Trump and his sons held sole authority over who could sell WLFI and profit from it.
He also said the token’s price has fallen over 50%, and he referenced posts from a World Liberty Financial discussion forum. Meeks argued that the matter raised national security concerns if foreign-linked investors were involved.
He asked Bessent to pause and increase scrutiny of any OCC bank charter or licensing application tied to World Liberty Financial. Bessent refused, saying the OCC operates independently.
Source: https://coingape.com/bitcoin-reserve-u-s-treasury-rules-out-btc-buys-as-gop-senators-push-for-use-of-gold-reserves/
