Congress Asks If Treasury Will “Bail Out Bitcoin”—Bizarre Exchange Highlights Crypto’s Federal Immunity
US Treasury Secretary Scott Bessent confronted an uncommon line of questioning on Capitol Hill on Wednesday. Rep. Brad Sherman (D-CA) pressed him on whether or not the federal authorities may step in to “bail out Bitcoin” throughout a downturn.
It comes as Bitcoin and the broader digital asset market bleed, with the pioneer crypto down by over 40% from its all-time high (ATH) and practically 30% from its 2026 peak.
Treasury Clarifies: No Federal Bailout for Bitcoin, Investors Bear Full Risk
The change, a part of a listening to earlier than the House Financial Services Committee, highlighted each the decentralized nature of Bitcoin and the restrictions of US monetary authorities in stabilizing digital belongings.
“Does the Treasury Department… have the authority to bail out Bitcoin?” Sherman asked, referencing the 2008 monetary bailouts that rescued main banks and Wall Street corporations.
Bessent paused earlier than asking for clarification: “What precisely does ‘bail out Bitcoin’ imply?” Sherman elaborated, asking whether or not the Treasury may direct US banks to buy Bitcoin or deploy taxpayer {dollars} to assist the Bitcoin value.
Indeed, the pioneer crypto wants saving, because it falls practically 45% from its ATH of $126,199 on the Binance exchange and early 30% from its 2026 high of $97,924.
“I’m Secretary of the Treasury. I shouldn’t have the authority to do this, and as chair of FSOC [the Financial Stability Oversight Council], I shouldn’t have that authority,” Bessent articulated.
The Secretary’s reply successfully guidelines out any federal security internet for Bitcoin buyers. It additionally reaffirms Bitcoin’s standing as a completely decentralized asset, free from authorities intervention.
This reminder doubtless contributed to Bitcoin’s 3% intra-day decline on Wednesday, although broader market weak point additionally performed a job.
Seized Bitcoin Shows Government Gains
Despite the shortage of a bailout, Bessent highlighted a special type of authorities publicity to crypto: seized Bitcoin holdings.
The Treasury retains parts of Bitcoin confiscated through law enforcement actions, a few of which have appreciated dramatically over time.
“One billion of Bitcoin was seized, 500 million was retained, and that 500 million has turn into over 15 billion,” Bessent famous, pointing to the passive beneficial properties Washington has realized with out committing further taxpayer sources.
While Capitol Hill Drama Highlights Crypto’s Regulatory Gap
The listening to additionally devolved into broader theatrics, illustrating the weird intersection of crypto, politics, and coverage.
Moments later, Democratic Rep. Gregory Meeks (D-NY) questioned Bessent on whether or not the Office of the Comptroller of the Currency (OCC) would withhold a bank charter from a Trump-linked crypto firm amid ongoing investigations.
The change rapidly escalated into a private confrontation, with Meeks accusing Bessent of political favoritism and the committee chair intervening to revive order.
The weird back-and-forth highlights the challenges lawmakers face when addressing crypto in conventional regulatory frameworks.
While standard monetary establishments have access to federal bailouts during crises, Bitcoin operates independently of presidency management. This means buyers bear the complete danger of value volatility.
The listening to additionally touched on Treasury methods for broader financial progress. Bessent touted President Donald Trump’s “parallel prosperity” agenda, emphasizing insurance policies to foster simultaneous growth on Wall Street and Main Street.
He additionally defended the administration’s tariff policies and reaffirmed assist for a powerful US greenback, citing ongoing issues over forex valuation.
There is a message for the crypto market behind Bessent’s testimony. Bitcoin, regardless of its rising institutional adoption, stays resistant to authorities backstops.
The market may continue to experience sharp swings with out aid from the US authorities. This actuality mirrors the basic distinction between decentralized digital belongings and TradFi devices.
The publish Congress Asks If Treasury Will “Bail Out Bitcoin”—Bizarre Exchange Highlights Crypto’s Federal Immunity appeared first on BeInCrypto.
