🇺🇸 Senator Lummis Slams Alleged U.S. Bitcoin Sell-Off as a “Strategic Blunder”
Pro-crypto U.S. Senator Cynthia Lummis has voiced strong criticism following viral claims that the United States government had sold off over 80% of its Bitcoin holdings — a move she called a “total strategic blunder.”
📉 The Shockwave: 85% of BTC Allegedly Sold
Crypto circles were rocked this week by a Freedom of Information Act (FOIA) response from the U.S. Marshals Service (USMS), which appeared to confirm that the agency currently holds only 28,988 BTC. This marked a stark decline from the 198,012 BTC reportedly held by the government earlier this year — triggering fears of an 85% liquidation.
The USMS, which manages seized digital assets and conducts crypto auctions, became the center of attention as the crypto community speculated on whether the U.S. had dumped a majority of its Bitcoin reserves.
🧵 Lummis Reacts: “Set Us Years Back”
Senator Lummis quickly took to X (formerly Twitter) to address the circulating reports, expressing concern that the alleged Bitcoin sell-off could seriously damage the United States’ strategic position in the global digital asset race.
> “If true, this would be a historic mistake,” she posted. “America should lead in Bitcoin, not fall behind due to short-sighted decisions.”
🔍 The Real Story: Misinterpretation or Misinformation?
However, blockchain intelligence tells a different story. On-chain data from Arkham Intelligence reveals that the U.S. government still holds approximately 198,012 BTC, currently valued at $23.49 billion. These assets, sourced from criminal and civil forfeitures, remain untouched in tracked public wallets.
The misunderstanding seems to stem from the fact that the USMS only manages a portion of the government’s Bitcoin — not the entire national stash.
🏦 Trump’s Executive Order: A Strategic Reserve
Earlier this year, President Donald Trump signed an executive order directing the U.S. to retain its Bitcoin as a “strategic digital reserve.” The goal is to capitalize on future price surges and potentially use the proceeds to offset mounting national debt.
With this context, it appears the panic around a supposed U.S. Bitcoin sell-off may be premature — or entirely unfounded.
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📊 Final Thoughts
Senator Lummis’ reaction reflects growing concern among lawmakers and investors about the U.S.'s long-term crypto strategy. While the current administration appears committed to holding Bitcoin for strategic reasons, the confusion highlights a need for greater transparency around government-held digital assets.$BTC
