Treasury Secretary Rules Out Crypto Bailouts During Contentious Financial Stability Hearing
Washington, Wednesday, 4 February 2026.
Bessent explicitly rejected using taxpayer funds to “bail out Bitcoin,” clarifying the Treasury’s stance during a volatile hearing dominated by fierce debates over inflation and executive conflicts of interest.
Federal Assets and Crypto Policy
Treasury Secretary Scott Bessent appeared before the House Financial Services Committee on Wednesday morning, February 4, to deliver the Financial Stability Oversight Council’s annual report [1][3]. While the mandate was to identify economic risks, the session quickly pivoted to the administration’s stance on digital assets. Bessent made it clear that while the government holds significant seized assets, he does not possess the authority to “bail out Bitcoin” or utilize taxpayer money to purchase cryptocurrencies [4][5].
Allegations of Executive Conflicts
The hearing was punctuated by acrimonious exchanges regarding the President’s financial ties. Representative Gregory Meeks (D-N.Y.) engaged in a shouting match with the Secretary over World Liberty Financial, a crypto firm associated with the Trump family that recently secured a $500 million stake from a United Arab Emirates official [3][6]. Meeks accused Bessent of acting as a “flunky” for the President and demanded a pause on any regulatory applications connected to the firm until conflict of interest reviews are completed [2][6].
Defining a New Economic Doctrine
Amidst the political theater, Bessent attempted to delineate the administration’s regulatory philosophy. He characterized the previous administration’s approach as “regulation by reflex,” warning that excessive attempts to eliminate all financial risk would lead to “the stability of the graveyard” [3][4]. Instead, he advocated for a system where the private sector is encouraged to mitigate risks proactively without heavy-handed government intervention [3].