Urgent Bitcoin Legislation
On November 3, 2020, the IRS seized 69,370 bitcoin worth over $1 billion.
The United States Attorney’s Office (Northern District of California) has filed a civil complaint for forfeiture and I expect the United States to prevail in court.
Past seizures of bitcoin were auctioned off by the U.S. Marshals Service.
In 2014 and 2015, the United States seized and sold more than 144,000 bitcoin, then worth $122 million but now worth almost $3 billion.
The expeditious auctioning off of seized bitcoin was, in my view and with the benefit of hindsight, a mistake. The Federal Reserve can create an infinite quantity of US dollars, the proceeds received in the auction. Bitcoins can not be created out of thin air and there is a limited quantity of them.
I humbly ask our legislators to draft and pass a bill with amendments to the Judiciary Act of 1789 and any other relevant statutes. These amendments would, by operation of law, halt the auctioning off of any bitcoin (BTC) seized by the United States until future legislation is passed.
The U.S. Marshals Service is to hold any bitcoin it receives, giving Congress time to deliberate on the disposition of this unique asset. A large strategic reserve of bitcoin may be crucial for our national security.