At the current Bitcoin price of $120,000, this amounts to roughly $3.4 billion. This has reignited debates about a massive Bitcoin liquidation under the Biden administration. However, on-chain analysis firm Arkham Intelligence reports no data supporting a large-scale sale. 

It was clarified that most of the 200,000 BTC are only seized assets not yet legally transferred to the government. Technically, the ownership of these BTC does not belong to the US government. 

Which Bitcoin Does the US Government Actually Own? 

According to FOIA documents from the US Marshals Service under the Department of Justice, only 28,988 BTC are currently held. These assets are legally forfeited cryptocurrencies. The government has full control over these coins. 

Meanwhile, the remaining 170,000 BTC are only seized (not yet forfeited). For example, around 94,000 BTC seized during the Bitfinex hack are in the process of being returned to creditors. If this happens, the government’s Bitcoin reserve will further decrease. 

Moreover, the “Strategic Bitcoin Reserve” plan proposed by Trump faces challenges. Many assets are not owned by the government but are temporarily controlled by agencies like the FBI or DEA. This invalidates claims that the government holds $24 billion worth of Bitcoin. The real figure is closer to $3.47 billion. 

Why Did the Sale Rumors Cause Fear? 

Last year, Bitcoin sales by various countries caused major volatility in crypto markets. This fueled fears that the Biden administration secretly sold Bitcoin. 

Prominent figures like Senator Cynthia Lummis have called for transparency. However, current data shows no evidence of large sales by the Biden administration. Intraledger transfers may have inflated the 200,000 BTC estimate, but this does not imply sales. Still, this discrepancy matters for investor confidence. 

I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins. 

If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x

— Senator Cynthia Lummis (@SenLummis) July 16, 2025

The US government does not hold 200,000 BTC. The actual amount of 28,988 BTC reveals a clear, verifiable reality beyond market fears and rumors. This affects both the liquidation rumors during Biden’s term and Trump’s reserve proposals. The crypto community continues to watch the situation closely. 

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Calling the move “just noise, not real progress,” Lummis criticized the Fed’s decision on April 25 via a post on X, arguing that the withdrawal of its 2022 supervisory letter — which had previously discouraged banks from engaging with crypto and stablecoins — was mere “lip service.”

A Divergent Voice Amid Crypto Optimism

While industry leaders like Michael Saylor and Anthony Pompliano welcomed the Fed’s latest action, Lummis adopted a far more cautious tone.

Having introduced the Bitcoin Strategic Reserve Act in July 2024, Lummis emphasized that the Fed is still violating laws concerning master accounts and continues to use reputational risk as a supervisory tool when evaluating banks.
Her remarks come at a time when the Federal Deposit Insurance Corporation (FDIC) is reportedly drafting a rule that would prevent regulators from considering reputational risk in bank examinations.

Lummis also noted that the Fed’s Section 9(13) policy statement remains intact, where Bitcoin and other digital assets are still labeled as “unsafe and unsound.”

Additionally, she pointed out that several officials involved in the controversial “Operation Chokepoint 2.0” effort are still active in shaping crypto regulations today.

“We are not fooled. The Fed deliberately targeted companies in the crypto sector, stifled American innovation, and shuttered businesses,” Lummis stated.
“This battle is far from over. Until the digital asset industry receives more than a life raft — until it gets a fair chance — I will continue holding the Fed accountable,” she added, directly addressing Fed Chair Jerome Powell.

Support from Custodia Bank CEO

Caitlin Long, founder and CEO of Custodia Bank, echoed Lummis’ skepticism, thanking her for “seeing this for what it really is.”

However, much of the broader crypto community viewed the Fed’s decision as a positive milestone.
Michael Saylor declared in an April 25 post that “banks are now free to support Bitcoin.“

Meanwhile, Anastasija Plotnikova, co-founder and CEO of blockchain compliance firm Fideum, described the move as a “key development that will pave the way for institutional adoption.”

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Utah’s Strategic Bitcoin Reserve Law: Initial Steps and Future Predictions

Dennis Porter, Founder and CEO of Satoshi Act Fund, stated in an interview with Simply Bitcoin that he is confident Utah will be the first state in the U.S. to pass a strategic Bitcoin reserve law. He also mentioned that currently 11 states have introduced such legislation, and he predicts this number could reach 15 by the end of the year.

Utah’s Fast Legislative Process and Digital Asset Taskforce

Porter emphasized that Utah has the shortest legislative approval process, taking only 45 days. He highlighted that Utah has a digital asset taskforce specifically focused on cryptocurrency and Web3 bills, and that every bill passed by this taskforce has become law. The strategic Bitcoin reserve law also successfully passed through this process.

The Importance of Bitcoin Reserves for States

Porter pointed out the importance of Bitcoin reserves for states in protecting their limited budgets. He explained that states’ budgets are dependent on tax revenues and are vulnerable to the devaluation of the dollar. However, with Bitcoin reserves, states can diversify their assets and protect their funds, thereby safeguarding their programs from potential losses at the federal level.

Senator Cynthia Lummis, who is working to pass a federal strategic Bitcoin reserve law, agreed with Porter, acknowledging that states are leading the way in this area. She also recognized the significant advantages Bitcoin reserves offer to states.

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“Bitcoin is a great store of value. Over the last four years or so it has increased about 55% per year. During the same period, the U.S. dollar has declined in value and we’ve seen increasing inflation,” Sen. Lummis noted rising inflation.

The Senator said, “So it would be of value to have a hard asset that backs the U.S. dollar and that grows in value instead of declining in value.”

Bitcoin Enthusiast

Lummis has been a long-time bitcoin enthusiast, allegedly purchasing her first coins in 2013, and has led front-stage efforts to enact laws tailored specifically for cryptocurrencies. After US President Donald Trump supported the sector this year, cryptocurrencies have become a hot political topic.

Lummis claims the measure would have the U.S. Treasury self-custody the bitcoins across “a variety of geographic locations.” Unless the tokens are sold to “reduce the debt,” Lummis stated that the government will retain those currencies for at least 20 years.

“We know from modeling the numbers and past experience with bitcoin that it is capable of being an absolute game changer for the mess the United States has gotten itself into with its debt and its deficits,” Senator Lummis remarked.

Seizure of Criminal Bitcoins

When asked, Lummis stated the U.S. Treasury should also seize the estimated 210,000 BTC the U.S. Department of Justice and other agencies have, mostly acquired through criminal seizures.

“We have a strategic oil reserve. We hold gold. So the idea of a strategic reserve used specifically to reduce the debt solves so many problems that it almost seems inherently obvious, but it’s nevertheless a big step,” Lummis said.

Sen. Lummis has proposed that the U.S. government purchase bitcoin before now. She discussed the possibility of bitcoin diversifying the Federal Reserve’s balance sheet in 2022. As per her most recent statutory reports, Lummis herself holds BTC valued at nearly $100,000.

Lummis said she is hopeful some crypto-specific legislation could pass this year—like the stablecoin bill she co-wrote with New York Senator Kirsten Gillibrand—but she does not think the bitcoin treasury reserve bill will be given any real thought until following the next elections.

“This is filed as a piece of legislation that people can review this year, developed in-house by my staff; it is not something I see passing this year,” Lummis said.

Legislative Talks

Likewise, Sen. Lummis mentioned she had been in talks with the still-being-developed crypto bill of Michigan Senator Debbie Stabenow. Though hopeful it might help close gaps in the current regulatory framework, she noted, “We’re running out of legislative days before the election.”

Lifelong Republican and Trump supporter Lummis claimed that the 45th president has basically opened the floodgates to the United States by embracing cryptocurrencies.

“President Trump was instrumental in drafting the language in the Republican Party platform. It includes opposing a central bank digital currency in the United States. It’s pro bitcoin mining, and he wants to keep America as the mothership for digital assets,” Senator stated.

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Like it does for gold and foreign currencies, the proposed measure seeks to mandate the Federal Reserve to maintain Bitcoin as a strategic reserve asset. This action might make Bitcoin a vital part of US monetary system management and the value stabilization of the US dollar.

Still, people familiar with this issue claim the details of the bill are unknown. Insiders disclose that the announcement might take place on Saturday, right before former President Donald Trump’s planned speech. Lummis might also talk about the measure during a Friday fireside discussion moderated by former Democratic Representative Tulsi Gabbard, now a Trump supporter.

Moreover, the report states that Lummis has been aggressively asking her Senate Banking Committee colleagues for help. Her goal in finding co-sponsors is to increase the likelihood of the measure passing the legislative process. Lummis has not formally verified the specifics, but her last tweet suggesting “big things in store this week” has generated conjecture.

For the crypto community, the forthcoming Bitcoin Conference on July 25–27 is seen as historic. Attracting important industry leaders and well-known politicians like presidential contenders Donald Trump and Robert F. Kennedy Jr., the conference promises to be a vital forum for debating the direction of digital assets.

Vice President Kamala Harris was under negotiation for one of the conference speakers, according to prior BeInCrypto reporting. But in the most recent updates, David Bailey, CEO of Bitcoin Magazine—the planner of the Bitcoin Conference—announced that Harris will not be presenting at the event.

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