Republican Senator Cynthia Lummis has stepped up her efforts to protect the crypto industry, directing pointed criticism at two key federal agencies just days before President-elect Donald Trump’s return to office. The Wyoming senator is raising concerns over the handling of digital assets by the U.S. Marshals and the Federal Deposit Insurance Corporation (FDIC).
Lummis Calls for Halt on Crypto Asset Sales by U.S. Marshals
In a letter this week, Senator Lummis urged the U.S. Marshals Office to slow down its ongoing liquidation of seized cryptocurrency, specifically bitcoin, related to the Silk Road case. The Marshals currently hold nearly 70,000 bitcoins, worth approximately $6.9 billion, which are being sold off.
Lummis expressed concerns that these sales are occurring too hastily, especially given the context of President Trump’s stated interest in creating a U.S. bitcoin reserve. She argued that the aggressive liquidation contradicts the incoming administration’s plans for a national bitcoin stockpile, particularly during the transition period.
“The Department continues to aggressively push forward with liquidation plans despite pending legal challenges, demonstrating an unusual urgency to dispose of these assets,” Lummis wrote in the letter. She emphasized that this rushed approach is inconsistent with Trump’s objectives regarding the establishment of a National Bitcoin Stockpile.
However, the U.S. Marshals are unlikely to alter their course without official direction from Congress or the President. Establishing a national reserve would require legislative and executive action, meaning the Marshals’ actions are guided by existing protocols, not hypothetical government reserves.
Lummis Takes Aim at FDIC Over Crypto Banking Concerns
Lummis also sent a letter to the FDIC, accusing the agency of attempting to hide evidence related to what the crypto industry calls “Operation Chokepoint 2.0.” This refers to an ongoing effort to restrict banks from servicing crypto-related businesses. Lummis, citing insider reports, warned that any effort to conceal such information would be “illegal and unacceptable.”
Her letter comes amid growing concern within the crypto community over actions taken by federal regulators to sever ties between digital assets and traditional banking institutions.
As Congress convenes and Trump prepares to return to the White House, Lummis’s actions signal a renewed push to protect the crypto industry from what she perceives as overreach by federal agencies.
Trump’s Interest in U.S.-Based Crypto Reserves
Crypto markets have also taken note of reports suggesting that President Trump may be interested in establishing reserves for other U.S.-based digital tokens, further fueling the debate over the future of cryptocurrency regulation in the U.S.
Lummis’s efforts reflect her ongoing commitment to advocating for the crypto sector, particularly as federal agencies and the incoming administration continue to shape policy in this rapidly evolving space.
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