The United States government has judicial authorization to sell 69,000 bitcoin seized from the defunct Silk Road marketplace.
However, key players in the cryptocurrency sector, such as digital asset investment firm Galaxy Digital, they question the opportunity of the sale, especially in a changing political context.
A federal judge ruled last week that the Justice Department can proceed with the sale of the seized bitcoin.
These coins, which came from illegal operations on the darknet and were stolen from the marketplace by hacker James Zhong, have been in government custody for years. Now, its possible sale generates tensions due to the imminent change of administration in the White House.
Galaxy Digital warned that selling these assets just ten days before Donald Trump takes office as president “seems almost spiteful.”
Trump has promised to establish a national strategic reserve in bitcoin and He assured that the bitcoin seized by the government will not be sold under his mandate.
A shift in policy towards cryptocurrencies in the United States
The outgoing government, led by Joe Biden, has maintained a critical stance towards crypto assets.
Under his administration, agencies such as the Federal Deposit Insurance Corporation (FDIC) have advised banks to avoid services related to digital assets, as reported by CriptoNoticias.
Additionally, industry figures have accused the Federal Reserve (FED) of implementing restrictive regulatory tactics. to limit cryptocurrency-related companies’ access to banking services.
In contrast, Trump has expressed his intention to promote digital assets in the United States. His proposal for a strategic reserve in bitcoin could position the country as a leader in state adoption of cryptocurrency.
Sell or keep?
In any case, the future of the 69,000 bitcoin seems to depend on time. If the Biden administration decides not to sell before January 20, Trump’s proposal to convert these holdings into a national reserve could materialize.
The decision on the fate of the confiscated bitcoin highlights the political differences between Biden and Trump regarding the approach to cryptocurrencies. As the cryptocurrency industry watches closely, the outcome will set an important precedent for the United States’ relationship with digital assets.
A similar case is being experienced in Germany, after last year the government sold 50,000 seized BTC. As reported by CriptoNoticias, a debate has now opened about creating a bitcoin reserve and whether that sale was timely, which did not capitalize on the escalation of BTC prices.
