US Treasury Secretary Revises Bitcoin Treasury Stance

• US Treasury Secretary Scott Bessent initially stated the government would not purchase additional Bitcoin for its strategic reserve, relying solely on seized assets valued at $15-20 billion.
• He later clarified that budget-neutral methods to acquire more BTC are still under exploration, reversing earlier remarks that caused a sharp market dip.
• Bitcoin and Ethereum prices fell over 3% and 2% respectively following the initial comments, with crypto liquidations approaching $1 billion.
• Senator Cynthia Lummis supported the plan, proposing gold revaluation as a funding mechanism to expand the reserve without impacting the federal budget.

The US Treasury’s evolving stance on Bitcoin has captured the attention of the crypto community, highlighting the government’s growing integration of digital assets into national strategy. In a Fox Business interview, Secretary Scott Bessent announced the establishment of a Strategic Bitcoin Reserve, stating, “To get into the 21st century, we’ve started a Bitcoin strategic reserve.” However, he initially emphasized that the reserve would be built exclusively from confiscated BTC, without new government purchases, leading to immediate market reactions.

This announcement aligns with broader pro-crypto policies under the Trump administration, including an executive order to incorporate cryptocurrencies into 401(k) plans. The current holdings, stemming from criminal seizures, are estimated at $15-20 billion, positioning Bitcoin alongside traditional reserves like gold. Bessent’s clarification on exploring budget-neutral acquisitions—such as through revaluations or other non-expenditure methods—aimed to reassure investors, but not before triggering volatility.

Market data showed Bitcoin dipping to around $119,204 and Ethereum to $4,656 amid the uncertainty, reflecting broader concerns over regulatory shifts. Community sentiment on X, from verified accounts like @news_oct, shifted from alarm to optimism post-clarification, with posts noting the potential for the US to become a “Bitcoin superpower.” Risks remain, as one analyst quoted in reports warned that reliance on seizures could limit growth and expose the reserve to legal challenges.

This development underscores the intersection of crypto and national policy, potentially boosting adoption but introducing new regulatory scrutiny. As Bessent noted, the goal is to maintain US financial dominance without fiscal strain.

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