US Treasury clarifies Bitcoin reserve plan after comments spark sell‑off

US Treasury Secretary Scott Bessent moved to calm markets after remarks on Fox Business rattled Bitcoin. He said the department is still exploring budget‑neutral ways to buy Bitcoin for a Strategic Bitcoin Reserve. His clarification followed headlines that many read as a freeze on purchases.

What Bessent said on TV

On Aug. 14, Bessent told Fox Business the government would not be “buying” Bitcoin and would instead build the reserve with confiscated assets. Traders took that as a hard stop on purchases. Within 40 minutes, Bitcoin fell from about $121,073 to $118,886, erasing roughly $55 billion in market value.

The swift clarification

About seven hours later, Bessent posted on X that Treasury remains committed to budget‑neutral pathways to acquire more Bitcoin. He tied the effort to the administration’s goal of making the United States a Bitcoin “superpower.” He also repeated that forfeited Bitcoin will anchor the reserve.

Where policy stands today

• The White House created a Strategic Bitcoin Reserve and a Digital Asset Stockpile on March 6. Both can use crypto seized in criminal cases.
• The order also opened the door to budget‑neutral purchases that do not add cost to taxpayers. Treasury has been “exploring” options for about five months but has not detailed a final approach.
• Ideas floated include reevaluating gold certificates and using tariff revenue. Any purchase program may require Congress to sign off. Senator Cynthia Lummis has pushed for action through the BITCOIN Act.

No more government selling, according to Bessent

Bessent said the United States plans to stop selling its existing Bitcoin. He estimated the Strategic Bitcoin Reserve at between $15 billion and $20 billion. External dashboards put known federal holdings near 198,012 BTC, a figure worth more when priced at recent levels.

Why the message matters

Clarity on the reserve program affects both supply expectations and nation‑state adoption narratives. A confirmed buying framework could tighten float and support price. A seizures‑only approach would slow accumulation and limit policy impact. The “no selling” stance removes one source of potential supply overhang.

What to watch next

• Whether Treasury outlines a concrete budget‑neutral purchase mechanism.
• Congressional movement on authorizing purchases.
• Any updates from the Digital Asset Working Group following last month’s report.
• Changes in reported federal Bitcoin balances, now that sales are paused.