Senator Cynthia Lummis of Wyoming has voiced strong opposition to the U.S. government’s plan to auction off 69,370 Bitcoins seized during the Silk Road investigation, a move that could bring in over $6 billion. In a letter addressed to the United States Marshals Service (USMS), Lummis questioned the urgency of the sale and expressed concerns that it is being rushed for political reasons, particularly during the transition to the new Trump administration.
Lummis argued that the proposed sale contradicts the policy goals of the incoming administration, especially in regard to the creation of a National Bitcoin Stockpile. “This rushed approach, occurring during the presidential transition period, directly contradicts the incoming administration’s stated policy objectives regarding the establishment of a National Bitcoin Stockpile,” Lummis wrote in her letter.
The senator also raised alarms about the USMS’s previous handling of Bitcoin seizures, noting that past sales have resulted in significant financial losses for U.S. taxpayers. According to Lummis, previous Bitcoin auctions led to a loss of approximately $18.5 billion in value, urging the government to reconsider the approach to avoid further financial setbacks.
Despite ongoing legal challenges, the sale of the seized Bitcoin is moving forward, with the Department of Justice citing Bitcoin’s price volatility as a reason for its expedited timeline. However, the sale still requires approval from other authorities, and Lummis’s inquiry seeks to address concerns regarding the timing and long-term financial consequences of such a large-scale sale.
A staunch advocate for cryptocurrency, Lummis has championed policies in Washington that support the crypto industry. She has previously proposed the creation of a Bitcoin strategic reserve within the U.S. Treasury and even suggested converting a portion of U.S. gold reserves into Bitcoin to establish a reserve without impacting the country’s financial system.
Related topics:
CleanSpark Surpasses 10,000 Bitcoins Mined in U.S. Operations
Raredex Brings Rare Earth Metal Investment to Arbitrum Blockchain
Oklahoma’s Bitcoin Freedom Act: A Step Toward Widespread Crypto Payments
