- Senator Lummis warns Bitcoin sales by the U.S. government could cost taxpayers $18.5B in unrealized gains.
- A proposed U.S. Bitcoin reserve could boost national wealth and secure leadership in the global crypto economy.
- Trump’s pro-crypto stance sparks hope for strategic BTC policies, avoiding rushed liquidation of seized Bitcoin.
Senator Cynthia Lummis has voiced strong concerns over the U.S. Marshals Service’s decision to sell nearly 70,000 Bitcoin. This move, she stated, could cost taxpayers billions, especially with Bitcoin’s rising value. Her remarks come as President-elect Donald Trump prepares to assume office, promising a pro-crypto administration that includes a national Bitcoin stockpile.
The Debate on Liquidating Seized Bitcoin
The Marshal Service has sold more than 195,000 Bitcoins since 2014, for a total of around $366.5 million, Lummis noted. However, this would amount to an astounding $18.9 billion at current market values. Consequently, unrealized gains of $18.5 billion have been lost by the United States. Trump has promised to keep all of his Bitcoin assets, but the agency seems ready to move on with selling off the Bitcoin that Silk Road has confiscated.
The timing of this sale raises strategic concerns. Lummis emphasized that insufficient consideration has been given to the long-term benefits of Bitcoin retention. Furthermore, her letter demanded details on current holdings, historical sales, and strategic plans for managing these assets.
Global Trends Favor Strategic Bitcoin Reserves
Across the globe, the concept of a national Bitcoin reserve is gaining traction. Analysts predict that several nations and central banks may soon diversify into Bitcoin. Fidelity Digital Assets’ Matt Hogan suggested that countries risk falling behind if they fail to allocate BTC in their reserves.
Notably, Lummis proposed converting a portion of U.S. gold reserves into Bitcoin. Such a move, she argued, would minimize balance sheet disruptions while establishing a forward-looking digital strategy. Many experts predict that this could drive Bitcoin’s price to $1 million per coin.
Implications for the Crypto Market
The U.S.’s handling of Bitcoin assets will influence its standing in the global crypto ecosystem. Industry leaders like Adam Back believe that an American Bitcoin reserve could push prices to seven figures. Moreover, this policy shift might enhance Bitcoin’s status as a reliable store of value.
As Trump’s inauguration approaches, crypto enthusiasts are closely watching Washington. Besides financial benefits, retaining Bitcoin could signify U.S. leadership in the digital economy. Hence, the stakes for strategic decisions on cryptocurrency have never been higher.
The post Senator Lummis Slams U.S. Bitcoin Sale Plan, Warns of $18.5B Taxpayer Loss appeared first on Cryptonewsland.
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