- The US Marshals Service has missed a deadline set by Senator Cynthia Lummis, who had sought detailed information about the agency’s Bitcoin holdings and management strategy.
- Senator Lummis has been one of the most visible advocates for a US government strategic Bitcoin reserve — in her letter to the US Marshals Service she was critical of its past BTC management and expressed concern it aims to sell more despite plans for a Bitcoin reserve.
- It’s still not clear if or when the US government will establish a digital assets reserve and if that reserve will include only Bitcoin or a range of other digital assets.
The US Marshals Service has missed a deadline, set by pro-crypto Republican Senator Cynthia Lummis, to disclose the details of its Bitcoin holdings and management strategy.
Senator Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, wrote to the US Marshals Service on January 15 just prior to Donald Trump’s inauguration, requesting it respond with information about its Bitcoin holdings by January 31, which was last Friday. She also requested the agency provide her staff with a detailed briefing on its Bitcoin holdings within 30 days of receipt of the letter.
The US Marshals Service hasn’t publicly responded to Senator Lummis’ request, but a Bloomberg report cited an anonymous source familiar with the matter who claims that the service will provide the senator with a detailed briefing in the coming weeks.
Related: Senator Lummis Confirms Bitcoin Reserve Following Trump Win
Lummis Concerned US Marshals Will Sell Despite Trump Plan for Bitcoin Reserve
In her letter to the US Marshals Service, Senator Lummis outlined her concerns around the Marshals’ plan to sell 69,370 BTC seized as part of the Silk Road case. She highlighted that Marshals Service’s track record on Bitcoin sales hasn’t been great, having previously sold much of its Bitcoin during market lows, resulting in huge missed potential profit for the US government:
The U.S. Marshals Service track record in handling seized Bitcoin reveals a concerning pattern of losses for American taxpayers. Based on historical sales data, the Service has sold approximately 195,092 Bitcoin between 2014 and 2023 for a total of approximately $366.5 million.
Senator Cynthia Lummis in her letter to US Marshals ServiceLummis pointed out that had these sales been properly planned the government could have realised billions of dollars more profit:
At current market prices, these same Bitcoin would be worth over $18.9 billion, representing a loss of more than $18.5 billion in unrealized value for American taxpayers—a staggering 98% loss in potential value. This pattern raises serious questions about the Service’s approach to managing and liquidating Bitcoin.
Senator Cynthia Lummis in her letter to US Marshals ServiceSenator Lummis also questioned the urgency of the Marshals’ plans to sell its next tranche of Bitcoin despite President Trump’s plan to establish a strategic Bitcoin reserve, which she says would entail keeping “100% of all the bitcoin the U.S. government currently holds or acquires”:
Of particular concern are current plans to sell an additional 69,370 Bitcoin, which appears to be proceeding despite President-Elect Donald Trump’s July 2024 announcement regarding the establishment of a National Bitcoin Stockpile…The urgency of this planned liquidation is particularly concerning.
Senator Cynthia Lummis in her letter to US Marshals ServiceTrump Floats Plans for Digital Asset Reserve
Recently Trump has expressed interest in establishing a digital asset reserve, which could hold not just Bitcoin, but a whole range of cryptocurrencies.
Indeed, one of the executive orders Trump signed during his first few days in office mentioned the establishment of a “digital asset stockpile”, which could be “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts”. Theoretically that could include all kinds of seized crypto assets but wouldn’t involve the US government purchasing any Bitcoin.
Previously though, Senator Lummis has introduced legislation to the senate proposing the US Treasury Department buy 200,000 BTC per year until it holds one million Bitcoin, or around 5% of the total supply.
Related: Ripple Accused of Blocking Strategic Bitcoin Reserve while Senator Lummis Set to Lead Crypto Taskforce
Last week the senator posted to X / Twitter that one of her top priorities is holding hearings on establishing a strategic Bitcoin reserve — leaving some asking questions about whether the plan is strictly for a Bitcoin reserve or if other digital assets are also set to be included.
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