Congress Asks If Treasury Will “Bail Out Bitcoin”—Bizarre Exchange Highlights Crypto’s Federal Immunity

During a House Financial Services Committee hearing, Representative Brad Sherman questioned Treasury Secretary Scott Bessent on whether the Treasury Department had the authority to "bail out Bitcoin" using taxpayer dollars, similar to the 2008 financial bailouts. Bessent clarified that neither the Treasury Department nor the Financial Stability Oversight Council (FSOC) possesses the authority to intervene and support the Bitcoin price. This exchange underscored Bitcoin's decentralized nature, confirming that investors bear the full risk of its volatility, unlike traditional financial institutions that may have access to federal safety nets. Separately, Bessent noted that the government benefits from seized Bitcoin holdings, citing one instance where $500 million in seized Bitcoin appreciated to over $15 billion. The hearing also featured other contentious exchanges regarding crypto regulation, ultimately highlighting the gap between traditional finance oversight and the governance of decentralized digital assets.

(Source：BeInCrypto)