Bessent backtracks, says Treasury committed to ‘exploring budget-neutral pathways’ to add Bitcoin
Treasury Secretary Scott Bessent confirmed the government may still expand its Bitcoin (BTC) holdings on Aug. 14, backtracking remarks made a few hours earlier.
Bessent had told reporters during a television interview in the morning that the Strategic Bitcoin Reserve would remain at its current level.
He said the reserve would consist of approximately $15 billion to $20 billion in Bitcoin that the government already controls, most of which was seized in criminal cases.
Bessent also indicated that there were no active plans to purchase more Bitcoin for the reserve.
However, later in the day, he posted on social media that the Treasury remained “committed to exploring budget-neutral pathways” to add to the reserve, reaffirming the government’s previously known stance toward accumulation.
Bessent did not clarify what a budget-neutral strategy might look like. In fiscal policy, that typically means finding ways to fund purchases without increasing the federal deficit, such as liquidating other assets, reallocating existing appropriations, or creating revenue streams to offset the cost.
The Strategic Bitcoin Reserve was established in March through an executive order signed by President Donald Trump. It is part of a broader White House effort to integrate digital assets into U.S. financial strategy.
Supporters see it as a way to diversify national reserves, provide a hedge against inflation, and strengthen the country’s position in global currency competition. The program currently relies on Bitcoin confiscated by law enforcement as its base supply.
The change in tone came during a volatile trading session. Bitcoin reached a new record high above $124,000 overnight before falling back to about $117,000 later in the day.
The drop followed stronger-than-expected wholesale inflation data, which reduced market expectations that the Federal Reserve could cut interest rates in September.
Bessent’s comments also come amid leadership changes in the administration’s digital asset policy team. Earlier this month, Bo Hines, who led the White House Council of Advisors on Digital Assets and helped design the reserve framework, left his position.
His exit has prompted speculation about potential adjustments to the program’s scope and timing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The current AI frenzy: featuring both "Tech and Internet" and "Real Estate" bubble characteristics, reminiscent of the 2008 global capital cycle
This wave of the AI boom exhibits dual characteristics: On a micro level, the heavy-asset nature of AI data centers is driving the industry toward "real estate-like" debt financing models, such as corporate bonds, private credit, and computing power ABS. On a macro level, nearly $2 trillion in overseas excess savings is flowing into core AI assets in the U.S. stock market through private institutions, reconstructing a transnational capital cycle reminiscent of the period before the 2008 subprime mortgage crisis. With nearly $3 trillion in off-balance sheet debt and rising interest rates, the industry is facing an impending major liquidity test.
AI Trading Faces a "Vulnerable Moment"! Japan and South Korea Stock Markets Experience "Black Tuesday" as SK Hynix, Samsung, and SoftBank Plunge Together
On Tuesday, Asian tech stocks faced a new round of systemic sell-off as the overnight weakness in the US semiconductor sector spread to the Asia-Pacific market. Concerns intensified over increasingly fierce competition due to the technological breakthrough by Chinese memory chip manufacturer ChangXin Memory Technologies, as well as worries about the returns on AI capital expenditure and the overall financing environment.
SpaceX (SPCX.US) has 80% upside potential hidden in Starship? Morgan Stanley: The 15th test flight will be a major catalyst
Morgan Stanley stated that SpaceX's upcoming 15th Starship flight mission could mark an important step toward making its next-generation rocket fully reusable, potentially expanding the company's opportunities in satellite communications and artificial intelligence (AI) sectors.
Crypto prices
More
