Wyoming Senator Cynthia Lummis wrote a letter to the United States Marshals Service (USMS) yesterday questioning the government’s plan to auction off 69,370 Bitcoins seized during the Silk Road case.
Lummis wants more information on the planned sale because it is very valuable at an estimated value of over $6 billion. The senator believes the sale is being pushed through too quickly and for political reasons, as it comes amidst the transition to the new Trump administration.
In her letter, Lummis criticized the potential sale for contradicting the incoming administration’s policy goals. She stated that the rushed decision goes against plans to create 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.
Lummis also shared her concerns on how the U.S. Marshals Service has managed to seize Bitcoin in the past. She pointed out that past sales of Bitcoin by the USMS resulted in financial losses for American taxpayers. The senator said that about $18.5 billion in value was lost because of previous Bitcoin sales and urged the government to prevent more financial problems.
The sale has gone ahead despite continuing legal challenges, with the Department of Justice citing the volatility in Bitcoin’s price as a reason to hurry. Still, the sale awaits approvals from other authorities. Lummis’s inquiry is seeking to have these concerns addressed, especially on the timing and long-term financial implications of such massive sales of Bitcoin.
Lummis is considering the sale of the seized Bitcoin under her broader move to back cryptocurrency. She’s one of the biggest backers in Washington for policies that treat crypto favourably. Lummis has suggested creating a Bitcoin strategic reserve at the U.S. Treasury.
During last year’s presidential election, she recommended converting some of the U.S. gold reserves to Bitcoin to make a reserve without directly impacting the finances of the country.
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