Bitcoin News Today: Bitcoin's Strategic Fate Hinges on Crime, Not Cash

U.S. Treasury Secretary Scott Bessent has confirmed the administration will not purchase additional Bitcoin for the strategic reserve, relying instead on assets seized through criminal and civil proceedings. This announcement came amid growing market volatility in the crypto space, where Bitcoin had surged to all-time highs before retreating. The Treasury’s position aligns with President Donald Trump’s March 2025 executive order to establish a Strategic Bitcoin Reserve, which outlines a model similar to traditional strategic reserves such as gold or oil. The reserve is built entirely from forfeited digital assets and is expected to be used to meet governmental objectives during crises, though the executive order does not specify the conditions under which the asset might be utilized.

As of December 2024, the U.S. government was estimated to hold 198,012 Bitcoin, valued at approximately $23.6 billion, according to Bitcoin analytics firm Bitbo. A significant portion—94,643 BTC—was seized in a 2022 case involving the 2016 Bitfinex hack. However, Bessent’s recent comments on Fox Business suggested the reserve may be worth between $15 billion and $20 billion at current prices, contradicting previous estimates and raising concerns among crypto supporters. The discrepancy has led to speculation about the actual scale of the U.S. holdings and whether some assets may have been liquidated or miscounted.

The Treasury has expressed a continued interest in expanding the reserve without using taxpayer funds, exploring "budget-neutral" strategies such as reallocating existing assets or leveraging surpluses from trade tariffs. One such proposal, put forward by author Adam Livingston, suggests funneling portions of the $70 billion surplus from customs duties into Bitcoin acquisitions. This approach would allow the administration to grow the reserve without increasing the national debt, a critical consideration given the strict terms of the executive order. Other potential strategies include revaluing Treasury gold holdings or liquidating oil from the Strategic Petroleum Reserve, though none have been finalized or implemented.

Recent law enforcement actions have also contributed to the growth of the reserve. In April and July 2025, the Department of Justice unsealed warrants authorizing the seizure of over $2.8 million in digital assets linked to ransomware operations. These seizures, part of ongoing efforts to combat cybercrime, could add to the strategic reserve over time. While the DOJ did not specify how much of these funds would eventually be allocated to the Bitcoin reserve, the emphasis on recovering assets from criminal activity reflects the administration’s broader strategy of treating Bitcoin as both a law enforcement and economic tool.

The uncertainty surrounding the U.S. Bitcoin strategy has had immediate implications for the crypto market. Following Bessent’s remarks, Bitcoin experienced a sharp price decline, falling nearly 5% in a single day. This drop came amid broader market anxiety fueled by concerns over stablecoin regulations and the potential for systemic financial instability. The recent Genius Act, which aims to regulate stablecoins, has drawn criticism from major U.S. banks, who warn that it could trigger up to $6.6 trillion in deposit outflows from traditional banking systems. These concerns underscore the complex interplay between crypto policy and broader financial market dynamics.

As the administration continues to refine its approach, the U.S. is also positioning itself in a global race to secure strategic Bitcoin holdings. If current estimates hold, the U.S. remains among the top holders of Bitcoin, though it trails behind China, the U.K., and Ukraine. With the Treasury committed to expanding the reserve through non-traditional means and ongoing law enforcement seizures, the strategic and economic implications of the U.S. Bitcoin policy remain a focal point for investors and policymakers alike.

Source:

[1] US Treasury confirms Bitcoin Reserve will rely on seizures (https://coingeek.com/us-treasury-confirms-bitcoin-reserve-will-rely-on-seizures/)

[2] Treasury Secretary Issues Surprise September Fed Prediction After U.S. Bitcoin Reveal Triggered Wild Price Swings (https://www.forbes.com/sites/digital-assets/2025/08/16/treasury-secretary-reveals-us-bitcoin-surprise-triggering-price-shockwaves/)

[3] US should fund Bitcoin strategic reserve with tariff surplus (https://cointelegraph.com/news/us-fund-bitcoin-strategic-reserve-tariff-surplus)

[4] Wall Street Issues Serious $6.6 Trillion Crypto Warning As Price Crash Fears Hit Bitcoin, Ethereum and XRP (https://www.forbes.com/sites/digital-assets/2025/08/18/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)