US Bitcoin Sell-Off? FOIA Report Sparks Debate
US Bitcoin Holdings Under Scrutiny
A recent report indicates that the U.S. Marshals Service (USMS) currently holds only 28,988 Bitcoin. This revelation has prompted questions regarding the U.S. government's past cryptocurrency sales, especially as Bitcoin recently reached a new all-time high of $123,000.
The debate centers on claims that the U.S. may have sold over 85% of its Bitcoin holdings, potentially incurring substantial financial losses.
FOIA Report Details USMS Bitcoin Holdings
Journalist L0la L33tz, through a Freedom of Information Act (FOIA) request, discovered that the USMS holds approximately 28,988 BTC, valued at around $3.4 billion at a Bitcoin price of $120,000. This figure is significantly lower than previous estimates, which suggested U.S. holdings were close to 200,000 BTC.
The USMS is responsible for supervising forfeited properties, including seized crypto assets, stemming from criminal investigations.
L33tz clarified that the USMS primarily manages forfeited property, not all seized property. Other agencies, such as the DEA or FBI, might possess additional Bitcoin. Therefore, while the USMS holds 28,988 BTC, the total Bitcoin controlled by various government agencies could be higher.
Senator Lummis Expresses Concern
Senator Cynthia Lummis has voiced apprehension over reports of the U.S. potentially selling off a significant portion of its Bitcoin. She cautioned that such decisions could hinder the U.S. in the global Bitcoin landscape.
“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves,” Lummis stated. “If this is true, it would push the U.S. behind in the race to dominate the Bitcoin space.”
Her concerns align with those who believe Bitcoin could be instrumental in addressing national debt issues amid evolving global economic conditions.
Bitcoin's Potential to Offset National Debt
The recent surge in Bitcoin's price has renewed discussions about its potential to alleviate national debt. Bulgaria's Bitcoin holdings, seized in 2018, have appreciated to a value equivalent to nearly 80% of its national debt.
The U.S. currently faces a massive national debt of approximately $36.2 trillion. Many proponents argue that holding onto Bitcoin reserves could help mitigate this burden, rather than prematurely liquidating them.
Furthermore, initiatives like the GENIUS Act, supported by Donald Trump to accelerate digital asset integration in the U.S., could position the country advantageously in the global crypto race. Trump has indicated his positive outlook on Bitcoin's potential to address critical economic challenges, suggesting that cryptocurrency adoption could provide a competitive edge for the U.S.
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