Conflicting Statements on Bitcoin Purchases
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U.S. Treasury Secretary Bassett made contradictory statements within hours regarding whether the government would buy Bitcoin for its strategic reserve. Initially, he denied any plans for new purchases but later backtracked, suggesting the government would explore “budget-neutral” ways to expand holdings.
This shift aligns with former President Trump’s pledge to make the U.S. a “Bitcoin superpower.” Despite the mixed signals, analysts see this as a positive sign that the government won’t sell its existing Bitcoin holdings. The removal of a potential $10 billion+ seller from the market could stabilize prices.
A Sudden Policy Reversal
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On August 14, Bassett first told Fox Business that the U.S. would not buy new Bitcoin. Instead, it would rely on $15–20 billion worth of seized Bitcoin from criminal cases or fines to build its reserve. This approach would avoid additional budget spending.
Hours later, he softened his stance in a post on X (formerly Twitter). He confirmed that confiscated Bitcoin would form the reserve’s foundation but added that the Treasury would explore budget-neutral methods to acquire more.
Why the Change Matters
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Trump’s March executive order to create a strategic Bitcoin reserve had sparked speculation about large-scale government purchases. Some expected tariff revenues or gold revaluations to fund the initiative, but details remained unclear.
While Bassett’s flip-flopping confused markets, crypto supporters found a silver lining. His latest comments suggest seized Bitcoin will be treated as a non-sellable reserve asset. This removes a major overhang—the risk of the U.S. government dumping its holdings, as Germany did last year.
Jeff Dorman, CIO of Arca, noted:
“This isn’t entirely surprising, but the key takeaway is that they can’t sell confiscated Bitcoin anymore. That eliminates a $10 billion-plus seller from the market.”
The “Bitcoin Superpower” Vision
Direct government purchases would be a milestone for crypto. Even small-scale buying could set a psychological price floor and boost institutional confidence. Adding Bitcoin to federal balance sheets may also accelerate Wall Street’s acceptance of the asset class.
This administration is seen as the most Bitcoin-friendly in U.S. history. Though the White House remains vague on specifics, crypto advocates remain hopeful for favorable policies. Bassett’s latest remarks leave room for future adjustments while keeping the “Bitcoin superpower” goal alive.
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