US Treasury Won’t Force Banks to Buy Bitcoin; Seized BTC Held in Strategic Reserve
US Treasury Secretary Scott Bessent told Congress the government will keep seized Bitcoin (BTC) in a strategic reserve but will not compel private banks to buy BTC or otherwise ‘bail out’ the market. During questioning by Rep. Brad Sherman, Bessent — who also chairs the Financial Stability Oversight Council (FSOC) — said neither the Treasury nor FSOC has authority to force banks to hold Bitcoin via tools such as reserve requirements. He disclosed that BTC obtained through government forfeitures rose in value from roughly $50 million to over $15 billion. The policy framework stems from a March 2025 executive order creating a Bitcoin strategic reserve; it limits future accumulation to seized assets or budget-neutral conversions (for example swapping seized oil or precious metals), and prohibits open-market purchases. Supporters say government accumulation would raise demand and prices; critics note the restrictions make such accumulation unlikely. Key names: Scott Bessent, Rep. Brad Sherman, and BTC advocates including Samson Mow. Traders should note this clarifies US authorities won’t provide direct demand-side intervention, but the large seized holdings and the legal framework establishing a reserve are structural factors that could influence supply dynamics and market sentiment.
Neutral
The announcement is neutral for BTC price in isolation. On one hand, confirmation that the US will not force banks to hold Bitcoin removes a potential artificial demand source, which could have been bullish if implemented. On the other hand, the government’s substantial seized holdings (grown from ~$50M to >$15B) and a formal strategic-reserve policy are structural factors that affect perceived supply/demand dynamics and market psychology. Short-term impact: likely muted — markets typically price clarity about policy as neutral to slightly negative when it removes potential buyer support. Volatility could spike around follow-up developments (e.g., rules for converting assets into BTC or sales of seized coins). Long-term impact: slight bullish structural tilt is possible if the reserve policy leads to accumulated non-market acquisitions over time (via forfeiture or budget-neutral swaps), which would reduce circulating supply or create predictable buy/sell flows. Overall, absent open-market purchases or a legal mechanism to compel private-sector buying, the direct price-driving effect is limited; traders should monitor on-chain movements of seized wallets, any regulatory changes, and statements about conversion mechanics.