U.S. Treasury’s Scott Bessent Open to Budget-Neutral Bitcoin Buys

The Strategic Bitcoin Reserve (SBR) was born from an executive order signed by President Donald Trump on March 6, 2025. The order directed the Treasury to establish two distinct frameworks: a Strategic Bitcoin Reserve composed exclusively of Bitcoin acquired via civil and criminal forfeitures, and a Digital Asset Stockpile for non-Bitcoin digital assets similarly obtained through enforcement actions. The reserve is explicitly prohibited from selling its holdings, signaling the government’s intention to treat Bitcoin akin to gold, valued as a long-term reserve asset.

The creation of the SBR marked a pivotal shift in U.S. crypto policy, reframing Bitcoin not just as digital speculation but as a strategic national asset. Recognizing Bitcoin as a reserve asset underscores its growing legitimacy, and some observers believe the reserve’s future size and potential may be underestimated, with projections that it could ultimately be larger than expected and predominantly composed of Bitcoin.

While the executive order aimed to avoid taxpayer spending, it triggered legal and operational questions about how the government would manage a digital reserve. The mandate for budget‑neutral accumulation prompted discussion of creative strategies, such as reallocating existing assets or re‑channeling forfeited funds, though how quickly the reserve might grow remains unclear.

The broader policy landscape reflects growing acceptance of cryptocurrency at multiple government levels. Nearly two dozen states have introduced or are considering strategic Bitcoin reserve legislation. Critics warn that the significant volatility of such assets could pose financial stability risks compared to more traditional reserve assets like gold or oil.

Supporters argue the Strategic Bitcoin Reserve could enhance long-term financial stability by holding assets in a secure, long-duration pool, much like how central banks use gold to maintain resilience during crises. They suggest Bitcoin, with its controlled supply and potential for appreciation, may increasingly act as a store of value and bolster the U.S.'s standing in the evolving digital asset landscape.

In early 2025, economists expressed no clear consensus on whether borrowing to hold cryptocurrency would provide economic benefits or reduce risks for central banks, reflecting ongoing skepticism within academic circles.

Bessent’s clarification that budget-neutral purchases could still be pursued, means direct, taxpayer-funded acquisitions are off the table, but indirect, budget-neutral accumulation remains possible.

Many analysts see the U.S. Strategic Bitcoin Reserve as a potential market signal, adding legitimacy and possibly encouraging institutional interest in Bitcoin. Some predict that even limited additions could reinforce confidence in the asset. Moreover, several governments are already positioning themselves to follow the U.S. lead, considering similar reserve strategies.

With Bitcoin prices fluctuating, recently hovering around $119,000 after reaching highs of $124,000, any expansion of the reserve, even if budget-neutral, could influence market dynamics.

In a landscape where U.S. policy has shifted decisively in favor of legitimizing cryptocurrencies, the Strategic Bitcoin Reserve stands as a hallmark of institutional acceptance. Though initially limited to seized assets, growing openness to budget-neutral accumulation suggests the reserve might yet grow, so long as it adheres to strict fiscal discipline. As policymakers continue navigating regulatory frameworks and market implications, one thing is clear: Bitcoin’s role in America’s financial strategy has become not only symbolic, but structurally embedded.