During the Digital Asset Summit on March 19, Senator Cynthia Lummis (R-WY) asserted that the prior Biden administration might have sold a substantial fraction of the United States’ seized Bitcoin reserves. In a panel discussion, Senator Lummis expressed her apprehensions, clarifying that while the United States government may have accumulated a significant amount of BTC through asset seizures, it is possible that some of these assets were liquidated during the Biden administration.
Did Biden Divest US Bitcoin?
“We’re attempting to ascertain the amount of Bitcoin and whether they have been completely transferred to US custody. We believe this could form the groundwork for the initial year’s installment of a strategic Bitcoin reserve. We estimate that the United States has secured around 200,000 Bitcoin through asset forfeiture. What remains unclear is how much of that the Biden administration sold just before the Trump administration assumed power,” Lummis stated.
Lummis indicated that her office has made formal inquiries to the US Marshals Service and has conferred with United States Attorney General Pam Bondi from Donald Trump’s administration in an effort to verify precisely how many BTC are still under federal oversight. When questioned about the challenges in determining the exact holdings, Lummis was straightforward:
“This should be straightforward to uncover. It should be simple to understand why a federal agency possesses twice as many credit cards issued as there are employees within the agency. I mean, there’s a clear failure of basic accounting and business practices within the federal government that would surprise you. It is unacceptable.”
Lummis has been an ardent advocate for incorporating BTC into the US financial framework. Last week, she reintroduced the BITCOIN Act at a conference hosted by The Bitcoin Policy Institute, aiming to create a Strategic Bitcoin Reserve for the federal government. The proposed legislation seeks to acquire up to one million BTC over five years, establishing Bitcoin as a store of value akin to gold reserves.
Additionally, at the Digital Asset Summit, Congressman Tom Emmer (R-MN) disclosed that various legislative proposals are making their way through Congress with comparable intentions. Emmer expressed confidence that these initiatives to create a Strategic Bitcoin Reserve bill for the acquisition of 1 million BTC will be passed: “Yes, there is legislation. I believe there are different members proposing various versions. … I am confident that before this Congress concludes, that will be enacted.”
Bo Hines, Executive Director of the US Presidential Council of Advisers for Digital Assets, discussed in a separate interview the history of the US with acquired Bitcoin. Hines noted that the government once possessed roughly 400,000 BTC but sold about half for approximately $370 million—a figure that would be valued at nearly $17 billion at present rates.
“Had we retained that, it would be valued at $17 billion today. It truly highlights the significance of this asset and the potential benefits it carries for the American populace.”
Hines also affirmed the White House’s objective to enhance the US government’s Bitcoin reserves in a budget-neutral manner: “We believe it is in the best interests of Americans to retain this asset long-term and accumulate as much as possible. … We’ve discussed the concept of creating a digital Fort Knox for the United States.”
He underscored that such a Bitcoin strategy would be budget-neutral, mitigating any additional financial strain on taxpayers. Hines is confident that the internal working group established through the inaugural digital assets Executive Order will generate “significant ideas on how to achieve this.”
Two weeks ago, President Donald Trump enacted an Executive Order mandating the establishment of a Strategic Bitcoin Reserve. This Reserve will be financed by BTC acquired through criminal or civil asset forfeiture cases. According to the order, pertinent agencies are required to provide a thorough accounting of their digital asset holdings to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets.
At the time of publication, BTC was trading at $85,748.
Featured image from Wyoming Public Radio, chart from TradingView.com
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