U.S. Treasury Secretary Scott Bessent, speaking at the World Economic Forum in Davos, Switzerland, reaffirmed the Trump administration's commitment to establishing the United States as a global leader in cryptocurrency innovation. He confirmed that the government will not back down from its plan to create a Strategic Bitcoin Reserve (SBR).
Bessent stated the administration's goal is to create the "best regulatory regime" for digital assets to encourage creativity and innovation. He specifically addressed the handling of seized Bitcoin, declaring that the government has stopped all sales of confiscated BTC. Instead, these assets will be added to the Strategic Bitcoin Reserve established by President Donald Trump's executive order in March 2025.
The executive order mandated that the U.S. government hold Bitcoin as a strategic asset and specified that Bitcoins in the reserve would initially consist of assets seized in judicial proceedings, with a prohibition on selling them. Bessent indicated that expanding the reserve through "budget-neutral" methods—primarily through additional asset seizures—is under consideration.
When questioned about the approximately $6 million worth of Bitcoin seized as part of the plea agreement with Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill, Bessent did not provide a direct answer. However, White House crypto advisor Patrick Witt clarified last week that this Bitcoin had not been liquidated and that this action did not violate the strategic reserve policy.
The announcement coincided with significant market turbulence. Bitcoin price crashed below $90,000, declining nearly $5,800 (3.7% in 24 hours) and contributing to an estimated $215 billion loss in total cryptocurrency market capitalization. Market analyst Ted Pillows warned that BTC must maintain support above the $89,000 level to preserve its short-term upward trend. At the time of reporting, BTC was trading at $89,497.
Analysts noted that the Treasury's confirmation did little to mitigate the sell-off, as the plan involves holding seized Bitcoin rather than purchasing additional coins from the open market, providing no immediate buy-side pressure. The market decline was also attributed to broader geopolitical tensions after President Trump hinted at imposing a 10% tariff on the European Union in an attempt to compel Denmark to sell Greenland.
