Treasury Secretary Confirms U.S. Won’t Buy More Bitcoin, Exploring Alternatives
Treasury Secretary Scott Bessent's comments initially caused a dip in crypto markets, stating the U.S. government would not purchase additional Bitcoin and would stop selling its holdings. This led to a 3.7% decline in Bitcoin price. However, Bessent later clarified that the government will utilize forfeited Bitcoin for a Strategic Bitcoin Reserve (SBR) and explore budget-neutral methods to increase the reserve.
Key points include:
- The U.S. reserves are valued between $15 billion and $20 billion.
- Senator Cynthia Lummis emphasized the need for the BITCOIN Act to expand the SBR without taxpayer funds.
- The BITCOIN Act proposes purchasing up to 200,000 BTC annually over five years, with strict holding requirements.
- Bessent downplayed revaluation of gold as a financial strategy, while Lummis supports it to fund the SBR.
- The executive order from March established the framework for the SBR based on forfeited Bitcoin.
As of the latest update, Bitcoin traded at $118,751.
