Key Points
- US Senator Cynthia Lummis has raised concerns over the US Marshals Service’s plan to liquidate 69,370 Bitcoins seized from Silk Road.
- The upcoming Trump administration has promised to establish a National Bitcoin Stockpile and end regulatory overreach by the US SEC.
As the US gears up for a pro-crypto president under the forthcoming Trump administration, discussions about Bitcoin and Web3 have become popular among lawmakers.
Promises made during the 2024 US campaigns included the formation of a National Bitcoin Stockpile and the termination of the current US SEC Chair Gary Gensler’s regulatory overreach.
Concerns Over Liquidation of Bitcoins
With less than a week to the second inauguration of US President-elect Trump, crypto investors are anxious about a potential sell-off of the 69,370 Bitcoins confiscated from Silk Road.
The US Marshal Service has been authorized by the court to sell off the seized Bitcoins to evade the increased market volatility.
US Senator for Wyoming, Cynthia Lummis, penned a letter on January 15 asking for detailed information from Ronald L Davis about the Bitcoin liquidation.
She emphasized that the planned sale of the Bitcoins is not the most beneficial approach for American taxpayers.
According to Lummis, the Marshal Service has sold approximately 195,092 Bitcoin units between 2014 and 2023 for a total of about $366.5 million.
At current market prices, these Bitcoins would be worth over $18.9 billion, representing a loss of more than $18.5 billion in unrealized value for the American taxpayers.
Request for Further Information
Lummis also expressed concern about the speed at which the Marshal Service is moving to sell the Bitcoins, despite President-elect Trump’s promise of a national Bitcoin stockpile.
Trump had also assured that his administration would retain 100 percent of all Bitcoin holdings.
Lummis has asked Director Davis for more detailed information on the planned Bitcoin sale.
She wants the Service to disclose its current Bitcoin holdings, the historical sales analysis, strategic planning for managing Bitcoin assets, and the decision-making process.
The Trump administration is looking to concentrate on the cryptocurrency market to grow its economy.
Additionally, it is seeking to tap into the Bitcoin market to address its increasing national debt, which recently surpassed $36 trillion.
Several states, led by Texas and Oklahoma, have suggested a strategic Bitcoin reserve to hedge against fiat devaluation and inflation.
Furthermore, El Salvador’s success with Bitcoin has encouraged more central banks globally to follow a similar path.
