Senator Cynthia Lummis (R-WY) raised concerns at the Digital Asset Summit on March 19, 2025, over the potential sale of United States-held Bitcoin reserves by the Biden administration.
She argued that transparency about the federal government’s cryptocurrency holdings is critical for effective policy-making and the development of the recently established Strategic Bitcoin Reserve.
“We’re hoping to see how much Bitcoin and whether they are all converted to U.S. custody,” Lummis said during a panel discussion. “We think that is the basis for the first year’s payment of a strategic Bitcoin reserve. We think the United States has received about 200,000 Bitcoin in asset forfeiture. What we don’t know is how many of those the Biden administration was selling off the day before the Trump administration arrived.”
Lummis’s office has since submitted formal inquiries to the U.S. Marshals Service and consulted with former U.S. Attorney General Pam Bondi to clarify the current status of federal Bitcoin holdings. The goal is to confirm the total value of Bitcoin under government control and identify any transactions conducted under the previous administration.
Strategic Bitcoin Reserve Established
On March 6, 2025, President Donald J. Trump signed an executive order establishing the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. With the goal to position the United States as a global leader in digital asset policy.
The reserve will be funded with Bitcoin seized through criminal or civil asset forfeitures and held by the Department of the Treasury. Under the terms of the executive order, Bitcoin deposited into the reserve cannot be sold and will be maintained as a strategic asset of the United States.
The order also mandates a full audit of all government-held digital assets. Federal agencies are required to submit a detailed report of their digital asset holdings to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets within 30 days.
The creation of the Strategic Bitcoin Reserve reflects a major policy shift in how the United States government treats digital assets. By classifying Bitcoin as a strategic reserve asset, the administration recognizes cryptocurrencies as a critical part of the global financial system.
Lummis’s comments detailed the need for greater transparency in the handling of government-held Bitcoin, particularly any sales or transfers that may have taken place under the previous administration.
As the U.S. government moves forward with its digital asset strategy, comprehensive audits and clear reporting will be key to maintaining public confidence and positioning the nation as a leader in the growing digital economy.