A heated debate over a Bitcoin reserve erupted on Capitol Hill right this moment as U.S. Treasury Secretary Scott Bessent informed lawmakers the U.S. authorities doesn’t plan to purchase BTC with taxpayer funds. The change occurred throughout a Home Monetary Providers Committee listening to, as Rep. Brad Sherman pressed him on a authorities intervention for Bitcoin. Nonetheless, Bessent stated the present regulation provides him no authority to “bail out Bitcoin.”
Treasury Rejects BTC Purchases Regardless of Bitcoin Reserve Plans
Throughout testimony tied to the Monetary Stability Oversight Council’s annual report, Sherman requested if the Treasury may assist Bitcoin throughout market turmoil. He questioned whether or not Bessent may order U.S. banks to purchase Bitcoin or change reserve guidelines to encourage BTC holdings. Nonetheless, Bessent replied that he doesn’t have that authority.
Sherman additionally requested if taxpayer {dollars} may very well be invested in Bitcoin and even the highest Solana meme coin, TRUMP coin. Bessent responded that neither his function as Treasury Secretary nor his place as FSOC chair permits such motion. When Sherman warned in opposition to public funds getting into crypto markets, Bessent challenged him, asking why non-public financial institution funds can be handled as taxpayer cash.
Because the change continued, Sherman shifted focus to Treasury-controlled property and requested if the federal government would deploy collected taxes into crypto. Treasury Secretary Bessent responded that the federal government is just retaining seized Bitcoin. Sherman argued that seized property differ from tax income, however Bessent stated the Bitcoin stays an asset of america.
Bessent then cited previous forfeitures to indicate the size of retained holdings. He stated $1 billion value of Bitcoin had been seized, with $500 million retained. He added that the retained quantity later grew in worth to over $15 billion.
GOP Senators Push Gold Reserves Thought
At the same time as Bessent rejected direct BTC purchases, some GOP senators proceed to discover methods to increase Bitcoin publicity. Senator Cynthia Lummis has prompt the Treasury may purchase Bitcoin utilizing U.S. gold reserves. She informed reporters final yr she raised that choice with Bessent and stated she would assist motion beneath current govt authority.
Nonetheless, critics additionally weighed in on the Bitcoin scenario. Economist and Bitcoin critic Peter Schiff responded on X after referencing President Donald Trump’s public assist for crypto. Schiff wrote that Trump desires the U.S. to turn into the Bitcoin capital of the world to compete with China.
Trump says he believes in crypto and needs to make the U.S. the Bitcoin capital of the world as a result of, if we don’t do it, China will. However Chinese language management is just too sensible to care about Bitcoin. Whereas we’re losing capital and sources, they’re constructing factories and shopping for gold.
— Peter Schiff (@PeterSchiff) February 4, 2026
Schiff added that China’s management is “too sensible” to prioritize Bitcoin and as an alternative focuses on factories and gold purchases. After an X consumer famous the U.S. authorities has not purchased any Bitcoin, Schiff replied that the federal government remains to be misdirecting sources into Bitcoin and crypto. He additionally stated that such capital allocation harms the U.S. economic system. Notably, Schiff not too long ago said that Bitcoin would by no means be the reserve forex whilst he continued to make a case for gold over BTC.
Rep. Meeks Raises World Liberty Monetary Issues
Moreover, Rep. Gregory Meeks raised questions on World Liberty Monetary. Meeks cited remarks from World Liberty Monetary founder, Eric Trump. Meeks quoted Eric Trump’s statements, saying he wouldn’t disclose buyers however claimed he had “significant buyers.”
This isn’t the one criticism of the agency. Senator Elizabeth Warren requested for an investigation into the UAE Royal entity’s take care of World Liberty Monetary. Meeks then alleged that Trump and his sons held sole authority over who may promote WLFI and revenue from it.
He additionally stated the token’s value has fallen over 50%, and he referenced posts from a World Liberty Monetary dialogue discussion board. Meeks argued that the matter raised nationwide safety considerations if foreign-linked buyers have been concerned.
He requested Bessent to pause and enhance scrutiny of any OCC financial institution constitution or licensing utility tied to World Liberty Monetary. Bessent refused, saying the OCC operates independently.
