Senator Lummis Challenges US Marshals’ Plan to Sell Off 69k Bitcoin, Citing Huge Loss for Taxpayers

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With Donald Trump’s potential return as POTUS in the upcoming administration, the focus on cryptocurrencies and Web3 is heating up among legislators. During the 2024 U.S. campaign, promises were made such as setting up a National Bitcoin Reserve and curtailing excessive regulation by the current US Securities and Exchange Commission Chair, Gary Gensler. Currently, Bitcoin (BTC) is trading at $99,615 with a daily volatility of 0.5%, boasting a market cap of $1.97 trillion and a 24-hour volume of $50.88 billion.

With only a few days left before the second inauguration of President-elect Trump, crypto investors are expressing major concerns over the possibility of selling off the 69,370 Bitcoin seized from Silk Road. Additionally, the court has granted the U.S. Marshal Service authorization to sell these Bitcoins in order to minimize market instability.

Sen Cynthia Lummis Responds to Planned Sale of Nearly 70k Bitcoin

On January 15th, Senator Cynthia Lummis of Wyoming penned a letter to Ronald L Davis seeking comprehensive details about the process of selling confiscated Bitcoins from Silk Road. Lummis pointed out that the proposed liquidation of the approximately 69,370 Bitcoins might not be in the best interests of American taxpayers.

According to historical records of sales, the U.S. Marshals Service sold nearly 195,092 Bitcoin units from 2014 to 2023, earning approximately $366.5 million. If these Bitcoins were sold today at current market prices, they would be worth over $18.9 billion. This means that the potential value lost for American taxpayers due to the drop in Bitcoin price is about $18.5 billion.

As a crypto investor, I found it troubling when Senator Lummis mentioned the swift action by the U.S. Marshals Service to liquidate Bitcoin (BTC), especially considering President-elect Trump’s pledge to amass a national Bitcoin reserve. What raised my concerns was his commitment that his administration would retain 100% of all Bitcoin holdings, not knowing how this liquidation fits into the bigger picture.

The letter further expressed concerns, stating that the timing and vigorous approach towards this deal might suggest that enough thought was not given to the long-term U.S. national strategy.

In the current scenario, Senator Lummis has asked Director Davis for more specific details about the proposed sale of Bitcoins that were seized in the Silk Road case. Specifically, he is interested in learning about the Federal government’s current holdings of Bitcoin, any historical analysis of Bitcoin sales, their strategy for handling Bitcoin assets, and the decision-making process behind these actions.

Bigger Picture

During Donald Trump’s presidency, efforts were made to prioritize the digital currency sector with the aim of boosting America’s economy. Furthermore, it was proposed to explore the Bitcoin market as a potential means for addressing escalating national debt, which has now reached an astounding $36 trillion.

Currently, multiple states, spearheaded by Texas and Oklahoma, are putting forth plans for a tactical Bitcoin reserve as a means to shield against potential devaluation and inflation of traditional currencies. Additionally, the triumph of El Salvador’s Bitcoin strategy has sparked interest among more central banks worldwide, encouraging them to adopt a similar approach.

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2025-01-16 21:33