U.S. Treasury Secretary Scott Bessent has reversed his previous stance, announcing that the government may acquire more Bitcoin for its Strategic Bitcoin Reserve beyond just seized funds. This move is intended to increase the nation's influence in the international cryptocurrency market.
President Trump established the reserve in March through an Executive Order, which initially mandated it to only hold Bitcoin forfeited to the federal government. Treasury officials estimate the current reserve to be worth between $15 billion and $20 billion, all from seized assets.
The new plan is for the government to buy more Bitcoin through "budget-neutral" pathways, meaning it will not use new taxpayer money. Instead, the Treasury will look for creative financial mechanisms, reallocate existing funds, or use previously forfeited assets to make the purchases. This cautious strategy aims to balance expanding the reserve with financial responsibility.
Analysts believe this approach will strengthen the reserve over time and provide a more stable foundation for future growth, allowing the government to act on market opportunities. While the market reacted cautiously to Bessent's announcement, the shift in policy signals the government's evolving position on digital assets and its careful, planned approach to managing its digital holdings.
August 2025, Cryptoniteuae