US Treasury Secretary Scott Bessent clarified on X that the department is still exploring budget-neutral ways to purchase Bitcoin, contrasting an earlier comment that tanked the crypto markets.
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US Treasury Secretary Scott Bessent has clarified that his department is still exploring budget-neutral ways to buy Bitcoin for the Strategic Bitcoin Reserve — contrasting with his recent comments suggesting the plan was off the table, which triggered a Bitcoin sell-off.
“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,’” Bessent in an X on Thursday.
He reiterated that the Bitcoin () forfeited to the federal government would form the reserve’s foundation.
There were already concerns that the US’s slow pace of executing its Strategic Bitcoin Reserve could leave it open to being f. Some feared that the Treasury may not even follow through on the strategy.
Around seven hours earlier on Thursday, Bessent’s comments to FOX Business were widely interpreted to mean the Treasury .
“We’ve also started to get into the 21st century, a Bitcoin reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” Bessent the media outlet, which wiped nearly $55 billion off Bitcoin’s market cap within 40 minutes of his comments, with Bitcoin falling from $121,073 to $118,886, CoinGecko shows.
Despite the clarification, Bitcoin is trading at $118,500 at the time of writing.
Less talk, more action, Bitcoin pundits say
While Bessent’s clarification reassured some Bitcoiners, others are still concerned that the US Treasury Department may not execute on its promise:
“Are you seriously still ‘exploring budget-neutral pathways’? At some point, exploration without execution starts to look like avoidance,” Bitcoin mining firm Braiins CEO Eli Nagar on X.
“Come on, get moving!”
Treasury has been “exploring” budget-neutral ways for five months now
Trump establishing both a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both of which would initially use crypto forfeited in government criminal cases.
The order opened the door for additional Bitcoin purchases via “budget-neutral” strategies that “do not impose incremental costs on United States taxpayers.” However, no major developments were shared on how those strategies may be executed in the Digital Asset Working Group’s lengthy last month.
Among the that have been floated are the reevaluation of the Treasury’s gold certificates and tariff revenue.
One reason for the slow progress may be that the Treasury requires congressional approval to purchase Bitcoin in a budget-neutral manner. US Senator Cynthia Lummis made of that point, on Congress to look closer into the she introduced in March.
“We’re going to stop selling” Bitcoin: Bessent
While no action has been taken on the buying side, Bessent confirmed that the US doesn’t plan to sell its existing Bitcoin holdings:
“We’re going to stop selling,” he told FOX Business, adding that he believes that the Strategic Bitcoin Reserve is currently valued “somewhere between $15 billion and $20 billion.”
That aligns closely with BitBo’s Bitcoin Treasuries dashboard, which that the US holds 198,012 Bitcoin worth $23.5 billion.
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