Within hours, Bessant issued contradictory statements regarding whether the US government would purchase Bitcoin to replenish its strategic reserves. He initially denied it, then reversed course, stating that the US government would explore budget-neutral ways to expand its reserves, fulfilling Trump's promise to build a "Bitcoin superpower." Despite his wavering stance, analysts believe this at least indicates that the US government will not sell off Bitcoin again. The exit of a multi-billion dollar seller is good news for the market.
US Treasury Secretary Bessant's stance on the Bitcoin strategic reserve has undergone a dramatic reversal.
On August 14th, local time, the Treasury Secretary had earlier stated that the US government would not purchase new Bitcoin, but a few hours later, he reversed course on social media, stating that the US government would explore "budget-neutral" ways to expand its reserves, fulfilling Trump's promise to build the US into a "world Bitcoin superpower."
"We're not buying these assets," Bessant said in an interview with Fox Business on Thursday. The U.S. government will not make new Bitcoin purchases, but will instead use $15 billion to $20 billion worth of confiscated Bitcoin from criminal or civil asset forfeiture proceedings or as compensation for fines to fill the reserve. This means the reserve will be built without drawing on new fiscal budgetary resources.
However, just hours later, Bessant softened his stance in a post on the X platform. He stated that Bitcoin confiscated by the U.S. government will form the foundation of the strategic reserve, and the Treasury Department has pledged to explore "budget-neutral" paths to acquire more Bitcoin.
The Bitcoin ultimately confiscated by the federal government will form the foundation of the reserve, established by President Trump in March through an executive order. Furthermore, the Treasury Department is committed to exploring budget-neutral paths to acquire more Bitcoin to expand the reserve and fulfill the President's pledge to make the United States the "world's Bitcoin superpower."
Behind the vacillation: The disappearance of a "potential seller"
Since Trump announced the creation of the strategic Bitcoin reserve in March, the cryptocurrency industry has been anticipating a buying spree from the U.S. government. The market had speculated that US tariff revenue or gold revaluation could fund this, but the likelihood of actual purchases remained unclear.
While Bessant's latest vacillation left the market confused, cryptocurrency supporters still found positives in it.
Analysts believe this statement may clarify that confiscated Bitcoin will be treated as an unsaleable reserve asset. This means the US government, once a potential seller, will be removed from the market, eliminating a long-standing oversupply risk. Last year, the German government's sale of its Bitcoin holdings put pressure on market prices.
"The World's Bitcoin Superpower"
For the cryptocurrency community, the US government's direct entry into the market to purchase Bitcoin will be a milestone. The psychological impact of this "sovereign bid" is enormous. Even if the purchase is small, it can set a psychological floor for the market and significantly boost the confidence of institutional investors. Furthermore, the inclusion of Bitcoin in the federal balance sheet will help Wall Street further legitimize the asset class.
Analysts believe this may be the most pro-Bitcoin government in US history. While the White House continues to remain vague about its specific plans, cryptocurrency advocates remain optimistic that the final policy direction remains positive.
Bessant's subsequent remarks on the X platform leave room for future policy adjustments, and his pledge to make the United States the "world's Bitcoin superpower" remains unchanged.
