Scott Bessent Rejects Bitcoin Bailout as Crypto Market Plunges

Treasury Secretary Scott Bessent has said that the Treasury Department cannot bail out Bitcoin. Bessent clarified this while responding to questions from Congressman Brad Sherman in a hearing before the House Financial Services Committee.

Rep Sherman questioned Bessent’s authority. He asked about bailing out Bitcoin, and pressed on ordering banks to buy it. He further asked whether Bessent could spend tax dollars on Bitcoin or a Trump Coin.

Bessent responded:

Banks may hold diverse assets for stability. They cannot be forced to hold Bitcoin. However, he did not provide a direct answer on whether the US will invest tax payers dollars in Bitcoin. Instead, he noted that the US government will keep the Bitcoin it has seized.

Trump Family Crypto Ties Under Scrutiny

Meanwhile, Trump family crypto connections were one of the recurring themes in questions that Bessent faced before the House committee. Apart from Sherman, Rep. Gregory Meeks (D-NY) also criticized Bessent for working for the president.

Meeks questioned Bessent directly. He raised the UAE-linked deal and noted the 49% stake in World Liberty Financial.

The congressman asked Bessent about the bank charter. He pressed her on whether she would act, and wanted her to direct the OCC to withhold approval. He insisted investigations must happen first. However, Bessent did not answer the question directly, noting that the OCC is independent.

Bitcoin Falls to Lowest Level in 15 Months

Interestingly, Bessent’s hearing coincides with a drop in the value of Bitcoin and other crypto assets. The flagship asset has fallen by almost 5% today to $72,000, in what appears to be a market meltdown.

This is the lowest level since November 2025, wiping out all the gains recorded after President Donald Trump’s election. Bitcoin has now lost around 19% of its value this year, with a 23% fall in the past 30 days alone.

The further decline in value today appeared to have been fueled by several factors, including Bessent’s statement. However, the recent statement by popular investor Michael Burry might also be a factor.

Burry, who made his name by correctly predicting the 2008 financial crash, has warned of a sustained decline in BTC’s price. He noted that this could lead to a death spiral for the asset, affecting the industry.

He said:

Unsurprisingly, the drop in Bitcoin value has also affected the rest of the crypto market. Several altcoins, including Ethereum, Solana, XRP, and BNB, have seen double-digit losses over that period. The total crypto asset market cap has also fallen by 18% to $2.46 trillion in seven days.