US Treasury Secretary Scott Bessent told a House Financial Services Committee hearing Wednesday that the federal government lacks authority to rescue Bitcoin (BTC) during market downturns, explicitly ruling out any taxpayer-funded intervention to stabilize cryptocurrency prices.
What Happened: Treasury Rules Out Crypto Rescue
Rep. Brad Sherman (D-CA) questioned Bessent about whether the Treasury Department could direct banks to purchase Bitcoin or deploy federal funds to support its price, referencing the 2008 bailouts that saved major financial institutions.
"What exactly does 'bail out Bitcoin' mean?" Bessent asked for clarification. Sherman elaborated on whether taxpayer dollars could prop up the cryptocurrency.
"I am Secretary of the Treasury. I do not have the authority to do that, and as chair of FSOC [the Financial Stability Oversight Council], I do not have that authority," Bessent stated.
The exchange comes as Bitcoin trades nearly 45% below its all-time high of $126,199 on Binance and roughly 30% off its 2026 peak of $97,924. The hearing also touched on seized crypto assets, with Bessent noting that $500 million in confiscated Bitcoin retained by the government has grown to over $15 billion.
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Why It Matters: Investors Bear Full Risk
Bessent's testimony underscores a fundamental reality for cryptocurrency holders: unlike traditional financial institutions that received federal lifelines during the 2008 crisis, digital assets operate outside government backstops. Investors absorb the full impact of price volatility.
The hearing devolved into broader confrontation when Rep. Gregory Meeks (D-NY) pressed Bessent on whether the Office of the Comptroller of the Currency would withhold a bank charter from a Trump-linked crypto firm.
The committee chair intervened to restore order after the exchange escalated.
Bitcoin fell approximately 3% intraday Wednesday, though broader market weakness contributed. The testimony reinforces that despite growing institutional adoption, the cryptocurrency remains immune to federal intervention—a stark contrast to traditional finance instruments.
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