Senator Cynthia Lummis (R-WY) has raised concerns about the possibility that the previous Biden administration may have sold off a substantial amount of the United States’ confiscated Bitcoin holdings. Speaking at the Digital Asset Summit on March 19, Senator Lummis highlighted the need for transparency regarding the government’s Bitcoin reserves.
According to Senator Lummis, the United States government has accumulated around 200,000 Bitcoin through asset forfeitures. However, there are uncertainties surrounding how much of this Bitcoin was liquidated during the Biden era. Senator Lummis emphasized the importance of determining the exact amount of Bitcoin held by the government, as it could serve as the foundation for establishing a Strategic Bitcoin Reserve.
In her efforts to clarify the situation, Senator Lummis has issued formal inquiries to the US Marshals Service and engaged with former United States Attorney General Pam Bondi from the Trump administration. Despite these efforts, the exact holdings of Bitcoin under federal control remain unclear.
Senator Lummis has been a vocal advocate for integrating Bitcoin into the US financial system. She recently reintroduced the BITCOIN Act, which aims to establish a Strategic Bitcoin Reserve for the federal government. The legislation proposes acquiring up to one million Bitcoin over five years, positioning Bitcoin as a store of value similar to gold reserves.
At the same summit, Congressman Tom Emmer (R-MN) revealed that multiple pieces of legislation with similar goals are circulating in Congress. Emmer expressed confidence that efforts to establish a Strategic Bitcoin Reserve bill to purchase 1 million Bitcoin will be successful.
Bo Hines, Executive Director of the US Presidential Council of Advisers for Digital Assets, discussed the government’s history with seized Bitcoin. Hines revealed that the government once held approximately 400,000 Bitcoin but sold half of it for $370 million. He emphasized the missed opportunity, as the remaining Bitcoin would be worth nearly $17 billion at current valuations.
Hines also confirmed the White House’s ambition to expand the US government’s Bitcoin reserves in a budget-neutral manner. He highlighted the importance of holding onto Bitcoin long-term and accumulating as much as possible for the benefit of the American people.
President Donald Trump recently signed an Executive Order mandating the creation of a Strategic Bitcoin Reserve funded by Bitcoin seized under criminal or civil asset forfeiture proceedings. Relevant agencies are required to provide a comprehensive account of their digital asset holdings to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets.
As the debate over the US government’s Bitcoin reserves continues, the cryptocurrency market remains volatile, with Bitcoin trading at $85,748 at the time of writing. Senator Lummis and other lawmakers are pushing for greater transparency and accountability in managing the country’s digital assets to ensure long-term financial stability and growth.