Senator Lummis Slams US Bitcoin Sell-Off as ’Strategic Blunder’—Here’s Why It Matters

When governments fumble crypto, the market feels it. Senator Cynthia Lummis just dropped a truth bomb on the alleged US Bitcoin dump—calling it a 'strategic blunder' that could haunt policymakers for years.

Why? Because selling low screams panic, and panic erodes trust. Meanwhile, whales are circling.

Classic move: bureaucrats selling the bottom while Wall Street quietly accumulates. The irony? They'll probably buy back at double the price later—using your tax dollars.

US government crypto holdingsUS government crypto holdings Journalist Addresses Misrepresentation of FOIA Response However, Lola L33tz, the independent journalist who filed the FOIA request, addressed the public misinterpretation of the USMS response, particularly the reference to Arkham Intelligence data, which indicates that the U.S. government still holds roughly 200,000 BTC. Lola clarified the distinction between seized and forfeited crypto assets. She explained that seized assets are held by law enforcement agencies, such as the FBI, following court-authorized actions. In contrast, forfeited assets have been legally declared government property, typically through judicial rulings or settlements. Essentially, the remaining bitcoin is likely still under seizure but not yet forfeited, which explains why it is not in USMS custody or included in the FOIA disclosure. Notably, Lola emphasized that the USMS is the primary custodian of forfeited Bitcoin, not all government-held BTC. “This doesn't mean that the U.S. government has sold any Bitcoin,” Lola added. “It just means that whatever these U.S. Treasury sites estimate is likely wrong, as they don't seem to differentiate between seized and forfeited coins.”