US won’t ‘bail out’ Bitcoin, says Treasury Secretary Bessent

Treasury Secretary Eleanor Bessent delivered a definitive statement during a fiscal policy address Monday, confirming the U.S. government has no plans to deploy taxpayer funds to ‘bail out’ the cryptocurrency market in the event of major systemic collapse or market volatility. Secretary Bessent emphasized the fundamental distinction between speculative digital assets, such as Bitcoin, and the federally regulated banking sector.

Speaking at the Council on Foreign Relations, Bessent stated: “Let me be perfectly clear: Bitcoin is a speculative instrument that operates outside the traditionally insured financial framework. While we are committed to providing regulatory clarity and cracking down on illicit finance in the digital asset sphere, investors must operate under the full understanding that the high rewards associated with crypto investing carry corresponding risks. These risks are borne by the investor, not the American taxpayer.”

The Secretary’s comments come amid recent calls from minor industry groups for greater government guarantees following a period of significant market fluctuations. Bessent reiterated that the Treasury Department’s priority remains focused on enforcing robust anti-money laundering (AML) controls and ensuring stablecoins are adequately backed and regulated, rather than acting as a backstop for asset prices. She concluded by urging Congress to quickly pass legislation that would empower regulators to better monitor risks posed by interconnected crypto firms.

Source: US won’t ‘bail out’ Bitcoin, says Treasury Secretary Bessent