- Senator Lummis demands answers from the US Marshals Service over the handling of seized Bitcoin, including future management strategies.
- Previous Bitcoin auctions by the US Marshals have resulted in significant financial losses, with Lummis pushing for more evaluation.
- Lummis introduces the BITCOIN Act, advocating for the creation of a national Bitcoin reserve and the acquisition of 1 million coins.
Senator Cynthia Lummis has voiced concerns over the US Marshals Service’s management of seized Bitcoin, specifically targeting the 69,000 BTC taken from Silk Road, a dark web marketplace. Lummis’ letter, sent over two weeks ago, called for direct answers regarding the agency’s holdings and plans for Bitcoin under its control. Despite the tight deadline for a response, the Marshals failed to meet it, with a Bloomberg report hinting at an upcoming private briefing between the agency and Lummis.
Bitcoin Auctions and Lack of Transparency
The US government has held a significant stash of Bitcoin seized in criminal investigations, much of it auctioned off since 2014. As of September, the Marshals held Bitcoin and other digital assets worth $7.6 billion. The most notable batch includes the 69,000 Bitcoin taken from the Silk Road, valued at billions of dollars today. Lummis’ concerns center on the agency’s decision to continue auctioning these assets despite President Trump’s proposal for a national Bitcoin reserve.
Concerns Over Timing of Auctions
According to Lummis, previous Bitcoin auctions during early times created major financial problems because of the timing because 140,000 bitcoins were sold in 2017 for $330 per coin. Those coins hold current market worth of over $100,000 per coin based on present-day prices yet their value decreased by 98% due to early sales transactions. The Senator pressed the Marshals to explain whether these losses were evaluated for their long-term effectiveness.
Amid growing concerns, President Trump proposed establishing a National Bitcoin Stockpile, with plans to hold all Bitcoin acquired by the government rather than auctioning it. Lummis has supported this idea, introducing the BITCOIN Act, which aims to acquire 200,000 BTC annually until the US holds 1 million coins. This effort is part of a broader strategy to secure Bitcoin reserves for national economic interests.
Lummis, a long-time Bitcoin advocate, now chairs the Senate Subcommittee on Digital Assets, created to address issues like the national Bitcoin reserve and digital asset regulation. She has committed to public hearings focused on the Strategic Bitcoin Reserve, rallying lawmakers and industry leaders to join the discussion. Lummis remains a powerful voice for digital asset policy, pushing for a more strategic approach to the government’s Bitcoin holdings.
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