Senator Cynthia Lummis Questions Continued U.S. Bitcoin Sales

Senator Cynthia Lummis criticized the U.S. government for continuing to liquidate Bitcoin holdings, despite what she says was an explicit directive from Donald Trump to preserve these assets for a Strategic Bitcoin Reserve.

“Why is the U.S. government still liquidating bitcoin when President Trump explicitly directed these assets be preserved for our Strategic Bitcoin Reserve?
We can’t afford to squander these strategic assets while other nations are accumulating bitcoin.”

What Lummis Is Arguing

Lummis’s comments center on three core points:

• Policy inconsistency: Selling BTC contradicts stated strategic intent
• Strategic value: Bitcoin should be treated as a national asset, not a disposable seizure
• Global competition: Other countries are accumulating BTC while the U.S. reduces exposure

Her framing positions Bitcoin alongside gold and foreign currency reserves.

Why This Matters

If the U.S. continues liquidating seized or held Bitcoin:

• It forgoes potential long‑term strategic upside
• It weakens credibility around a future Strategic Bitcoin Reserve
• It may place the U.S. at a disadvantage if Bitcoin becomes a core reserve asset

Once sold, these coins cannot be reacquired without market impact.

The Broader Debate

The issue highlights a growing divide:

• Treasury/DOJ practice: Liquidate seized assets to return funds or close cases
• Strategic view: Hold Bitcoin as a sovereign reserve similar to gold

Lummis and other pro‑Bitcoin lawmakers argue the latter requires a structural policy change, not ad‑hoc sales.

Global Context

• Several nations are exploring or quietly holding Bitcoin
• ETFs and institutional adoption are deepening liquidity
• Reserve assets are increasingly evaluated through a geopolitical lens, not just returns

In that context, selling BTC may be seen as short‑term thinking.

Bottom Line

Senator Lummis’s remarks sharpen the debate over whether Bitcoin is merely a seized asset—or a strategic reserve commodity. If the U.S. intends to compete in a world where nations accumulate digital assets, she argues, continued liquidation risks squandering an advantage that cannot be easily rebuilt.