A congressional hearing in the United States unexpectedly ignited market sentiment in the crypto space. During the House Financial Services Committee hearing, U.S. Treasury Secretary Scott Bessent was questioned by California Democratic Congressman Brad Sherman: “When Bitcoin prices plummet significantly, does the federal government have the authority to step in and ‘rescue Bitcoin’?” This question quickly spread on social media platforms, making “whether Bitcoin has government backing” a hot topic of discussion.
In response to the inquiry, Bessent clearly stated that, whether in his capacity as Treasury Secretary or as Chair of the Financial Stability Oversight Council, he has no authority to use public resources to support Bitcoin prices, nor can he instruct banks to buy the asset. This statement effectively reaffirmed to the market that Bitcoin is not protected by the U.S. government, and investment risks are entirely borne by individuals.
Currently, Bitcoin has fallen more than 40% from its all-time high and is below the high range set earlier in 2026. Bessent’s response was interpreted as a “risk-off signal,” and Bitcoin briefly weakened again during the trading session. Unlike traditional financial institutions that can receive policy support during crises, crypto assets remain in a “self-reliant” state.
It is worth noting that Bessent also mentioned another reality: some Bitcoin seized and held by U.S. law enforcement has generated substantial paper gains as prices rose. This is not an investment activity but passive holding, which also indirectly reflects Bitcoin’s high volatility.
In the latter part of the hearing, political friction intensified. New York Congressman Gregory Meeks engaged in a heated debate with Bessent over investigations into crypto companies linked to Trump, with the scene once becoming chaotic. These episodes highlight that, under the current regulatory framework, legislators still find it difficult to effectively address the boundaries between crypto assets and traditional finance.
For investors, this congressional dialogue sends a clear signal: Bitcoin will not receive a “safety net” at the federal level. Without policy intervention, price volatility may continue, and the market can only rely on its own supply, demand, and sentiment regulation. This also once again underscores the fundamental differences between decentralized assets and traditional financial systems.
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