Analysts note that discussing a state-led Bitcoin reserve could influence liquidity, price dynamics, and the broader policy landscape, including cross-border adoption and governance concerns.

The exchange with Rep. Meeks intensified and was interrupted by the committee chair after loud exchanges and accusations.

Trump-era policy allows budget-neutral expansion of BTC holdings via asset forfeiture or converting existing reserves, rather than new budget expenditures, a stance the Treasury says it continues to explore.

As chair of the Financial Stability Oversight Council, Bessent said he cannot instruct banks to purchase crypto and cannot force private sector involvement in Bitcoin.

The government does not have the authority to bail out Bitcoin or compel private banks to buy crypto, as Treasury Secretary Scott Bessent testified before Congress.

The Treasury official emphasized that neither Treasury nor FSOC has the power to force banks to buy Bitcoin or to bail out Bitcoin during a downturn, drawing a line between custody planning and direct market intervention.

The policy debate centers on governance, risk controls, and the appropriate public role in a decentralized asset, advocating cautious asset custody and avoidance of direct market manipulation.

Executive Order 14233 is cited, proposing forfeited Bitcoin be held in the Strategic Bitcoin Reserve, with discussions also touching on seizures related to Tornado Cash and Samourai Wallet, though litigation details were not provided.

The hearing revisited the Strategic Bitcoin Reserve established in connection with the March 2025 executive order, stressing budget-neutral approaches and eliciting mixed reactions from the crypto community.

The article notes exchanges between Bessent and lawmakers, including Gregory Meeks, and cites prior reporting, with attribution to DL News journalist Mathew Di Salvo.

The discussion touched on Trump-era crypto activities, including a meme coin and a Bitcoin strategic reserve, with lawmakers accusing Trump’s crypto dealings of corruption or conflicts of interest.

The story frames Bitcoin policy within ongoing congressional scrutiny, budget talks, and regulatory briefings, with updates anticipated on budget-neutral acquisitions, FSOC guidance, and the congressional role in the reserve.