Senator Cynthia Lummis Advocates for Bitcoin Reserve and Critiques Federal Actions
Senator Cynthia Lummis, set to lead the Senate Banking Committee's digital assets panel, is taking a stand against the sale of Bitcoin holdings by federal agencies.
What You Need to Know:
- Lummis has urged the U.S. Marshals Office to slow down on selling off Bitcoin seized from the Silk Road operation, citing concerns regarding current Bitcoin reserves worth approximately $6.9 billion.
- She warned the Federal Deposit Insurance Corp. (FDIC) about the repercussions of concealing evidence concerning regulations affecting banks and digital asset clients.
Amidst the upcoming transition in the federal government, Lummis is pushing for a U.S. Bitcoin strategic reserve while addressing urgent issues surrounding digital assets. In her recent letter to the U.S. Marshals, she emphasized that the aggressive liquidation plans should be halted, especially given the pending legal challenges to the sales.
Lummis stated:
"The Department continues to aggressively push forward with liquidation plans despite pending legal challenges, demonstrating an unusual urgency to dispose of these assets."
Translation: “The Department continues to aggressively push forward with liquidation plans despite pending legal challenges, demonstrating an unusual urgency to dispose of these assets.”
Moreover, she is concerned about internal efforts at the FDIC to restrict information about how the agency directs banks on handling crypto clients, describing such actions as "illegal and unacceptable."
In this new Congress session, Lummis, along with Senator Tim Scott, plans to lead the committee's agenda, countered by Senator Elizabeth Warren's views on regulations. Scott has already released a framework for creating a regulatory landscape for digital assets to promote innovation and financial inclusivity.
