Bessent Backtracks says the Treasury has pledged to “explor the neutral budget path” to add bitcoin

Treasury Secretary Scott Bessent confirmed that the government could expand its holdings of Bitcoin (BTC) on August 14th.

Bescent told reporters in a morning television interview that strategic Bitcoin Reserve would remain at current levels.

He said the preparation would consist of about $15 billion to $20 billion in Bitcoin, which the government already manages, but most of which were seized in criminal cases.

Bessent also showed that there are no aggressive plans to buy more Bitcoin for the reserve.

However, later in the day he posted on social media that the Treasury had reserved that it was “committed to exploring budget-neutral pathways,” reaffirming the government's previously known stance on accumulation.

Bessent did not clarify what a budget-neutral strategy would look like. Fiscal policy usually means finding ways to fund purchases without increasing the federal deficit, such as liquidating other assets, redistribution of existing budgets, and creating revenue streams to offset costs.

The strategic Bitcoin Reserve was established in March through an executive order signed by President Donald Trump. This is part of the broader White House effort to integrate digital assets into the US financial strategy.

Supporters see it as a way to diversify national reserves, provide hedges against inflation, and strengthen the country's position in the global currency competition. The program currently relies on Bitcoin confiscated by law enforcement as a basic supply.

The tone change was brought about during a volatile trading session. Bitcoin hit a new record of over $124,000 overnight, then returned to about $117,000 a day later.

The decline followed stronger than expected wholesale inflation data, which reduced market expectations in September when the Federal Reserve could cut interest rates.

Bessent's comments occur in the changing leadership of the administration's digital asset policy team. Earlier this month, Beau Hines, who led the White House Advisors Council on Digital Assets and helped design the reserve framework, left his position.

His exit prompted speculation about potential adjustments to the scope and timing of the program.

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