Bitcoin experienced a sudden decline of over $5,000 following the announcement that the U.S. government would cease selling bitcoins obtained through seizures. The plan, presented by White House crypto and AI lead David Sacks, intends to retain seized bitcoins as a store of value while ensuring no taxpayer funds are utilized for acquiring crypto assets. This strategy raises questions about the logistics of managing substantial bitcoin reserves and future acquisitions of cryptocurrencies, with Sacks highlighting the need for careful custody and auditing processes.
"Sell the news" is often a very powerful effect in this space, but the market had already surged last Sunday, when the president teased adding other cryptocurrencies to the reserve.
Typically, the sale of seized assets is used for victim compensation and to fund law enforcement efforts.
This means it will not cost taxpayers a dime," the White House crypto and AI lead, David Sacks, wrote on X.
The logistics of how all this will work will be crucial. The White House will need to devise some sort of custody and audit program for its already enormous stash.
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