U.S. Treasury Secretary Outlines Budget-Neutral Plan to Expand Strategic Bitcoin Reserve

Scott Bessent confirmed the U.S. will build its BTC reserve from $15B–$20B in seized holdings.

The Treasury will explore budget-neutral strategies to acquire more Bitcoin without new taxpayer costs.

Senator Lummis proposed revaluing gold reserves to strengthen the reserve under the Bitcoin Act.

U.S. Treasury Secretary Scott Bessent has clarified the government’s approach to building the Strategic Bitcoin Reserve (SBR). Speaking on Aug. 14, Bessent stated that the reserve will be established using between $15 billion and $20 billion worth of BTC already forfeited to the federal government. He confirmed that these holdings will serve as the foundation for the reserve created under President Donald Trump’s March executive order.

Bessent also noted that the Treasury is committed to finding budget-neutral strategies to acquire additional BTC for the SBR. These strategies, he said, will avoid imposing new costs on taxpayers while fulfilling the administration’s objective to expand the reserve.

Earlier Remarks and Recent Update

The clarification followed an earlier interview on FOX Business the same day. In that appearance, Bessent had stated that the U.S. would not buy Bitcoin but would use confiscated assets to grow the reserve. He also confirmed that the government will stop selling seized Bitcoin, marking a shift from previous practices.

Following public discussion of those comments, Bessent posted on X to provide additional detail. He reiterated the commitment to building the SBR through assets already in federal custody and by exploring budget-neutral acquisition methods.

Legislative Perspective on Reserve Expansion

Senator Cynthia Lummis responded to Bessent’s remarks by referencing a legislative proposal she called the Bitcoin Act. Lummis said the United States could not address its $37 trillion national debt through direct Bitcoin purchases. Instead, she proposed revaluing the nation’s gold reserves at current market prices and using any surplus value to strengthen the SBR.

She emphasized that any expansion of the reserve must follow a budget-neutral approach. Her proposal aligns with the requirement in President Trump’s March 6 executive order, which instructs the Treasury and Commerce departments to develop acquisition strategies that do not create new taxpayer costs.

Market Context and Developments

The announcement comes as demand for Bitcoin from institutional investors remains strong. Corporate treasury allocations and inflows into spot BTC exchange-traded funds have contributed to a tightening supply environment. This supply and demand imbalance has been a factor in Bitcoin’s ongoing macro-level price momentum.

Industry participants, including the CEO of MARA Holdings, have also presented reserve strategies in response to BTC's growing role in national and corporate finance. The focus on budget-neutral methods reflects the administration’s aim to expand Bitcoin holdings while managing fiscal constraints.