U.S. Treasury Explores Budget-Neutral Bitcoin Acquisition Strategies

According to Cointelegraph, U.S. Treasury Secretary Scott Bessent has clarified that the department is actively exploring budget-neutral methods to acquire Bitcoin for the Strategic Bitcoin Reserve. This statement comes after previous comments suggested the plan was abandoned, leading to a significant Bitcoin sell-off. Bessent emphasized the Treasury's commitment to expanding the reserve and fulfilling U.S. President Donald Trump's vision of making the United States a global leader in Bitcoin. The foundation of this reserve will be built on Bitcoin forfeited to the federal government. Concerns have been raised about the slow pace of the U.S. in executing its Strategic Bitcoin Reserve, with fears that other nations might outpace the U.S. in this endeavor. Earlier comments by Bessent to FOX Business were interpreted as the Treasury not pursuing Bitcoin purchases, causing a $55 billion drop in Bitcoin's market cap within 40 minutes, as reported by CoinGecko. Despite the clarification, Bitcoin's price remains volatile, trading at $118,500 at the time of writing. Bessent's recent clarification has provided some reassurance to Bitcoin enthusiasts, although skepticism remains about the Treasury's commitment to its strategy. Eli Nagar, CEO of Bitcoin mining firm Braiins, expressed frustration over the prolonged exploration phase, urging the Treasury to take decisive action. Max Keiser, an adviser to El Salvador on Bitcoin, also criticized the ongoing exploration efforts. The Treasury has been considering budget-neutral strategies for five months, following an executive order signed by President Trump on March 6. This order established both a Strategic Bitcoin Reserve and a Digital Asset Stockpile, initially utilizing crypto assets forfeited in government criminal cases. The order also allowed for additional Bitcoin purchases through strategies that do not impose extra costs on taxpayers. However, the Digital Asset Working Group's recent report did not provide significant updates on these strategies. Potential budget-neutral strategies include reevaluating the Treasury's gold certificates and utilizing tariff revenue. One challenge in progressing with these strategies is the need for congressional approval to purchase Bitcoin in a budget-neutral manner. U.S. Senator Cynthia Lummis has highlighted this issue, urging Congress to consider the BITCOIN Act she introduced in March. Meanwhile, Bessent confirmed that the U.S. does not plan to sell its current Bitcoin holdings, stating, "We're going to stop selling." He estimated the value of the Strategic Bitcoin Reserve to be between $15 billion and $20 billion, aligning with BitBo's Bitcoin Treasuries dashboard, which reports that the U.S. holds 198,012 Bitcoin worth $23.5 billion.