As Trump’s pro-crypto presidency approaches, Senator Lummis confronts the US Marshal Service over plans to sell 69,370 BTC from Silk Road, questioning the timing and strategic implications.
As the United States prepares for the first pro-crypto POTUS under the upcoming Donald Trump administration, the Bitcoin BTC $84 500 24h volatility: 0.7% Market cap: $1.68 T Vol. 24h: $9.86 B and Web3 issue has become a hot topic among many lawmakers. Furthermore, several promises were made during the 2024 U.S. campaigns, including establishing a National Bitcoin Stockpile and ending the regulatory overreach by the current US SEC Chair Gary Gensler.
Less than a week to the 2nd inauguration of US President-elect Trump, the biggest fear among the crypto investors is a potential liquidation of the 69,370 BTCs seized from Silk Road. Furthermore, the US Marshal Service received a green light from the court to liquidate the seized BTCs to avoid the heightened market volatility.
Sen Cynthia Lummis Responds to Planned Sale of Nearly 70k Bitcoin
In a letter dated January 15, US Senator for Wyoming Cynthia Lummis requested detailed information from Ronald L Davis regarding the liquidation of Bitcoins seized from Silk Road. Lummis highlighted that the planned liquidation of the 69,370 Bitcoins is not the best solution for the American taxpayers.
“Based on historical sales data, 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 same Bitcoins would be worth over $18.9 billion, representing a loss of more than $18.5 billion in unrealized value for the American taxpayers,” the letter noted.
Lummis further highlighted that the speed at which the Marshal Service is moving to liquidate the BTCs, despite President-elect Trump promising a national Bitcoin stockpile, is rather concerning. Moreover, Trump had promised that his administration would keep 100 percent of all the BTC holdings.
“The timing and aggressive pursuit of this sale raises serious questions about whether proper consideration has been given to the long-term strategic interest of the United States,” the letter added.
In this context, Lummis has requested further detailed information from Director Davis on the planned sale of the Bitcoin seized from the Silk Road case. On top list, Lummis wants the Service to disclose its current Bitcoin holdings, the historical sales analysis, strategic planning for managing Bitcoin assets, and the decision-making process.
Bigger Picture
The United States under the Trump administration is seeking to focus on the cryptocurrency market to expand its economy. Additionally, the Trump administration is seeking to tap into the Bitcoin market to solve its ballooning national debt, which recently surpassed $36 trillion.
Already, several states – led by Texas and Oklahoma – have proposed a strategic Bitcoin reserve to hedge against the fiat devaluation and inflation. Furthermore, El Salvador’s success in the Bitcoin strategy has convinced more central banks around the world to follow in a similar direction.
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