So, Scott Bessen from the Treasury just announced that the US is taking a different approach with Bitcoin. They're not going to sell the seized coins, which will now be part of a long-term strategy, similar to gold and oil reserves. Seems like they’re getting serious about diversifying their assets.
US Treasury's Bitcoin Holding Strategy Raises Eyebrows
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bridge_2016Senior Member
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#2May 23, 2021, 07:08 PM
Not sure this really changes anything for the market. I mean, the US seizing Bitcoin won’t really push institutions to adopt it more. They still see it as a long-term play, so this news doesn’t feel super groundbreaking.
I get what you're saying, but the US holds a massive amount. With them being a powerhouse, their move towards Bitcoin could influence a lot of institutions down the line. Just having them involved could change the game, even if it’s subtle.
Didn’t Trump make a move back in 3/2025 regarding a Bitcoin reserve? That just caused the price to drop then because it wasn't what the community expected. They wanted them to buy, not use confiscated coins. Plus, it’s just an executive order, not a law, so they can sell anytime they want.
satoshi_apeNewbie
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#5May 25, 2021, 03:01 PM
Exactly my point. They’re not selling now, but I speculate they might wait for Bitcoin to reach insane levels before releasing them. Seems like they’re making calculated moves to pump up the price.
The strategic reserve could have been a real big deal for adoption. But the earlier bitcoin ETF approval has already attracted big players. It’s kind of surprising there wasn’t a big market reaction.
Honestly, I can’t take anything the government says at face value anymore. One day it’s no sales, the next who knows? The whole confiscation thing is also a bit sketchy, especially if they can just take from anybody.
chris_maxiNewbie
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#8May 26, 2021, 03:00 AM
With all the huge values tied to crypto in the US, selling seized Bitcoin seems like a dumb idea. They’d lose grip on the market. Holding onto it probably nets them more in tax revenue.
Right? They're keeping it for the long haul just like they do with gold and oil. What happens when they run out of oil reserves? Or when was the last time they failed at holding a top gold stash? They’re just applying the same tactic with Bitcoin.
If they start selling, that’ll totally contradict Trump’s statements about making the US a crypto powerhouse. Honestly, I expected them to invest some real money into Bitcoin, not just rely on what they took from others.
Seems like they learned from Germany, who missed out on a major opportunity by selling their Bitcoin too soon. Holding onto strategic assets is the way to go!
AFAIK, the Germans said their sales were due to constitutional issues. The US doesn’t seem to have that problem. If they valued Bitcoin at all, they’d be buying it instead of just using others’ leftovers.
f0rk_5tackNewbie
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#13May 26, 2021, 08:55 PM
The claim that non-custodial wallet devs were running an unlicensed operation is messy. What Bessen says about holding Bitcoin should be taken lightly. Where’s that audit of their crypto holdings they promised ages ago?
Do what they do, not what they say. An executive order isn’t the same as an actual law. What’s to stop the next administration from selling everything off? They've done it before.
CyberTokenSenior Member
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#15May 27, 2021, 02:34 AM
Can’t see how seized Bitcoin boosts the market. If they bought a bunch instead, that could really make waves. Honestly, just holding it is good for scarcity, but it doesn’t push the market up.
You’ve got a point there. Sometimes I wonder if the US is just playing politics with their promises. They proposed the reserve but getting it approved is another story.
If Venezuela had a proper government, those seized Bitcoins should go back to them. It’s not fair to keep them. They should be returned if they were indeed taken unfairly.
chris_maxiNewbie
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#18May 29, 2021, 08:37 AM
Yeah, but at least with the executive order, they’re safe for now. Better than having them in limbo. Imagine how bullish it could be if there was a full-blown act to protect those holdings.
True, for the next few years we won’t have to stress about the US dumping Bitcoin. But let’s not get too comfy. Most politicians are still pretty skeptical about it.
As for Venezuelan holdings, it's all just rumors. US is making a name as the crypto capital. They shouldn’t be selling off seized coins; they should stash them in the treasury instead.